Persimmon on track after solid third quarter as demand improves

(Sharecast News) - Housebuilder Persimmon said it is on track to hit full-year targets for housing completions this year after an in-line third-quarter performance, with demand helped by improvements in customer sentiment as interest rates begin to reduce and affordability improves.

The company delivered 1,416 homes in the third quarter, slightly down from 1,439 last year, with a 3% increase in private homes to 1,267 outweighed by a 27% drop in partnership homes to 149.

The current forward sales position stood at £2.02bn across 8,575 homes by 3 November, up from £1.73bn at the same point and 8,182 last year.

Private sales account for 4,988 of forward sales or £1.45bn, up 40% year-on-year by value, while the average private selling price in the forward order book is up 5% at £291,400.

Persimmon said affordability constraints, particularly for first-time buyers, have eased due to falling interest rates and a greater availability of over 90% loan-to-value mortgage products on the market than a year ago.

"Positive momentum in the business continued over the summer months and we remain on track to deliver growth in completions to c.10,500 for the full year," said chief executive Dean Finch. "Visitor numbers and enquiries remain strong and sales rates continue to be well ahead of the prior year."

The company said that 85% of the full-year target of 10,500 homes are already exchanged or completed, up from 84% this time last year, with further growth in outlets and volume expected in 2025.