Persimmon, one of the UK’s largest housebuilders, has released its half year results, revealing that it completed 4,249 new homes, down from 6,652 in the prior half year period (H2 2022).

The firm also revealed that its underlying operating profit fell by 65% in H1 2023 but it left its annual profit guidance for the year unchanged.

Charlie Huggins, manager of the 'Quality Shares Portfolio' at Wealth Club, commented: “Lower home completions combined with elevated build cost inflation have seen Persimmon’s first half profit fall significantly. New home buyers are clearly exercising greater caution, and frankly who can blame them. This has presented a very challenging backdrop for Persimmon and its peers.

“Mortgage rates have soared over the past year, and have increased further in recent months. When combined with the limited availability of high loan to value mortgages and the end of the Help to Buy scheme in England, it’s no surprise the housing market has seen a marked slowdown.”