Persimmon, one of the UK’s largest housebuilders, said it would build more homes this year than it previously expected despite a 37% fall in its new home completions during the third quarter of this year.
According to the housebuilder, it is now on track to deliver around 9,500 new home completions in 2023, up from its half-year guidance of 9,000.
“Trading in the period was in line with expectations and pricing was broadly stable,” Dean Finch, group chief executive at Persimmon, commented on the company’s Q3 trading statement. “We are on track to deliver around 9,500 quality new homes in 2023 with operating profit in line with expectations and at an operating margin similar to the first half.”
Persimmon, however, anticipates market conditions to “remain highly uncertain” in 2024 as higher mortgage rates and costs of living continue to deter property buyers.
“New home buyers are clearly exercising greater caution, and frankly who can blame them?” commented Charlie Huggins, manager of the quality shares portfolio at Wealth Club. “Mortgage payments for first-time buyers have soared over the past 18 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 that the housing market has seen a marked slowdown.”