Persimmon Q1 sales completions fall 42%

Housebuilding giant Persimmon has revealed it has seen a 42% reduction in group completions in the first quarter of the year to 1,136 homes (Q1 2022: 1,950 homes). This included 902 private homes (Q1 2022: 1,631 homes) and 234 homes for its housing association partners (Q1 2022: 319 homes). Persimmon said the reduction comes after its forward sales position at 1 January 2023 was £1.0bn, down 36% year-on-year as the “challenging trading environment in the second half of 2022 resulted in lower sales rates and elevated cancellation rates, particularly in Q4”. However, it revealed that since the start of the year its forward sales position has increased to £1.7bn Overall pricing also remained firm in the first quarter, with the group's private average selling price on completions up 10% on Q1 2022 and up 4% on Q4 2022. Dean Finch, group chief executive, said: "Our performance in the first quarter was as we expected and reflects the challenging trading conditions in Q4 2022 and consequent lower forward order book as we entered the year. Trading over recent weeks has offered some signs of encouragement with visitor numbers up, cancellation levels normalising and sales rates continuing the steady improvement evident since the start of the year. “If sales rates continue at the levels seen year to date, we would expect full year 2023 volumes to be toward the top end of the previously indicated range of 8,000 to 9,000 completions. Sales prices remained firm in the period as customers recognised the quality, improved value and energy efficiency of our homes, with a good response to our marketing campaigns driving strong customer interest.” He added: "We are delighted to have been awarded five star status for customer satisfaction by the Home Builders Federation for a second year running, reflecting the hard work that has gone into putting our customers right at the heart of our business. "Looking beyond 2023, Persimmon has a strong platform from which to grow outlets and volumes as the market recovers. We have an excellent pipeline of new land opportunities to support growth in 2024, subject to planning, and we are encouraged by the early signs of improved customer confidence. The longer-term demand fundamentals for new homes remain robust and Persimmon has made significant progress over the past two years in building a stronger, more sustainable business for the future."

Persimmon Q1 sales completions fall 42%

However, it revealed that since the start of the year its forward sales position has increased to £1.7bn

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