In a statement ahead of its financial results, Persimmon Homes has shrugged off the uncertainty caused by Brexit and blamed local authorities for delaying housing delivery.
Despite its share price plummeting by almost a third in the wake of EU referendum, Persimmon remains confident that Brexit can’t put a dent in strong market fundamentals. The property developer was more concerned about the delays caused by a clunky planning system.
“We continue to experience delays to the start of construction on new development sites due to local inefficiencies in the planning system and despite the welcome improvements that continue to be made to planning processes by the Government,” it said.
In spite of this, Persimmon’s completion volumes rose by six per cent in the first six months of the year. It reported Group revenues of £1.49 billion, 12 per cent ahead of last year.
Approvals remained ahead of last year for the April/May period despite the uncertainty leading up to the EU referendum. Persimmon said it continued to take good levels of sales through May and June, with private sales rate one per cent ahead year on year.
“It remains too soon to judge the effect that the result of the EU Referendum will have on the UK new homes market,” the statement said. “We believe that market fundamentals remain strong, supported by long term unfulfilled demand, and that the UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions.”
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