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Builder Persimmon reports 33% revenue rise

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  • 02/07/2014
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Builder Persimmon reports 33% revenue rise
Home builder Persimmon reported a 33% rise in total revenues after trading in the first six months of the year remained strong at £1.2bn in its latest trading update.

This is a rise from £0.9bn at this stage last year with the group completing 6,408 new homes, 1,386 up on last year.

The group’s half-year results to 30 June will be out on 19 August.

The builder commented that lenders ‘continue to support’ homebuyers following the Mortgage Market Review which has not slowed the market.

Persimmon opened 90 new sites in the first half of the year, giving the firm 380 active sites, with 100 more planned for H2. The average unit sale price rose by 4% to £186,000, driven by larger family homes in the sales mix.

In November, Persimmon reported sales of over 3,000 homes under the Help to Buy equity loan scheme since April 2013.

In 2014, of the 6,408 completions in the first half, circa 1,000 were affordable housing with the rest private sales.

Yesterday, mortgage boss of the biggest UK lender Stephen Noakes urged the Government to incentivise developers to build more affordable homes.

Writing in the CML’s News and Views magazine, CML chairman and mortgages director at Lloyds Banking Group Noakes said there is no silver bullet.

“But there is a greater need for affordable homes through a combination of more shared ownership, social rent and affordable rent, which have to form a certain percentage of new housing developments.”

 

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