Business says the housing market remains fertile for expansion

Persimmon says the housing market remains fertile for expansion, despite the distraction of the snap General Election and frustrating planning delays.

The business, which has offices in Bowburn, near Durham City, unveiled its bullish outlook today (Wednesday, July 5), wherein bosses revealed sales increased eight per cent to 7,794 in the six months to June 30.

Its average selling price was also up 3.5 per cent on a year ago at £213,000, with revenue 12 per cent better off at £1.66bn.

Jeff Fairburn, group chief executive, said enduring competition among mortgage lenders had continued to provide a crutch for the business to maintain its growth, with the market taking the General Election “in its stride”.

He said: “The trading performance in the first half of the year has been excellent and customer confidence remains resilient. We remain fully committed to building the homes needed by communities right across the UK.

“Our focus on building traditional family housing in attractive locations will help meet unfulfilled demand from first-time buyers and home movers. We are confident in the group’s future prospects.”

However, Mr Fairburn, said the business, which has its headquarters in York, with further offices in Newcastle and Thornaby, near Stockton, has not been without some issues, pointing to irritations over planning.

He added: “The group has strong momentum moving into the second half of the year, with total forward sales value at June 30 of £1.60bn, 18 per cent higher than last year. In addition, sales through the second half of 2017 will be supported by opening a circa 100 new sales outlets, despite the frustration of continued delays to site starts due to planning inefficiencies.”

Persimmon has developments in Shildon, County Durham, and Pelton, near Chester-le-Street, as well as sites in Shotton, near Peterlee, east Durham, and Colburn, near Catterick Garrison, North Yorkshire.