Persimmon off to a strong start in 2021

Property Reporter
30th April 2021
construction 998

With current forward sales 23% ahead of last year at £3bn, volume housebuilder, Persimmon, has said it's off to a strong start for the year in its latest trading update.

Persimmon says the average selling price of private homes in the order book was £252,000 compared to last year’s £244,500.

As you would expect, due to the pandemic, the firm’s average private sales rate for the year to date is well ahead of last year, but still around 17% ahead of 2019, the business said.

Build rates currently remain at pre-Covid levels, while active outlet numbers are around 15% down on 2019 and the first half of 2020. Persimmon said that this was in line with their strategy of mitigating the risks associated with the cycle.

It expects its sales outlet network to remain stable, at around 300 outlets on average for the year, allowing for the robust sales rates being experienced.

The business also said it remained on track in its first half to deliver new homes volumes close to those of H1 2019, with similar volumes expected in the second half.

It added that “The Persimmon Way”, its standards initiative announced in 2019, was progressing well, “and the group remains focused on implementing quality improvements that are consistently applied on each home we build through initiatives including improved training and quality assurance processes”.

Dean Finch, Persimmon’s group, CEO, said: "Demand for newly built homes remains healthy and the group's sales rates are encouraging. Persimmon's high-quality land holdings, balance sheet strength and liquidity provide a strong platform to continue to deliver the homes the country needs, underpinning long-term sustainable returns for the benefit of all of its stakeholders."

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