Persimmon reports healthy sales following Brexit vote

January 5, 2017 / Isla MacFarlane
Persimmon reports healthy sales following Brexit vote

Persimmon said that sales reservations through the autumn season were strong with healthy customer demand for new homes, buoyed by competitive mortgage offers.

Persimmon posted revenues for 2016 of £3.14 billion, up 8% on 2015. Legal completion volumes increased by 599 new homes to 15,171. The Group’s average selling price increased 4% to c. £206,700.

The Group’s private sales rate for the second half of the year was 15% ahead of the prior year and second half legal completion volumes of 7,933 were 695 stronger than for the first half of the year (H1: 7,238).

“We expect our gross margin in the second half will have improved further due to a combination of the continued reduction in our land cost recoveries associated with opening new sites, and the continued strong control over development costs,” the housebuilder said in a trading statement.

“We continue to see good opportunities to acquire additional land whilst remaining mindful of the risks associated with the uncertainty arising from the UK’s decision to leave the EU,” the statement said. “We expect local authorities to continue to progress their plans to support growth in housing delivery in line with the National Planning Policy Framework.”

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