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Sales rise for Persimmon as market continues to grow

SALES at housebuilder Persimmon have risen by a third so far this year as the firm continues to benefit from a resurgent market.

Persimmon, which also trades as Charles Church and Westbury Partnerships, said its revenues rose 33 per cent on a year earlier to £1.2 billion in the six months to June 30.

Sale completions jumped almost 28 per cent to 6,408 homes during the period, while its average selling price lifted four per cent to £186,000.

Forward sales were also 28 per cent up at £1.18 billion with around 4100 homes into the private market at an average prices of £204,600.

Persimmon shares slipped following the update, closing down 8p at 1290p, but have risen around ten per cent so far this year.

There are already signs that banks are beginning to cut back on mortgages as figures this week showed that mortgage approvals for house purchase dropped to 61,707 in May, from 62,806 in April, an 11-month low.

Persimmon, led by chief executive Jeff Fairburn, said mortgage lenders have continued to support the market, while "exercising discipline in the improving market".

The company currently trades from 380 sites and said its consented land bank at June 30 stood at 82,300 plots, providing an "excellent platform" for the future.

Persimmon built about 1,100 homes in Scotland during 2013 and has indicated it expects a similar number this year.

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