According to Persimmon’s latest results, the company attributed this to a lower forward order book due to “market challenges” following the mini Budget.
The average selling price was pegged at £256,445, which is up four per cent year-on-year, which it said was due to a larger proportion of larger homes being sold to customers.
Housing revenue for the period decreased by a third during the period to £1.09bn due to lower completions and price growth.
The firm delivered a profit before tax of £151m, which is down from £439.7m in the same period last year.
It continued that for the full year, it expected to deliver around 9,000 completions, which is the top end of its previously indicated range.
Persimmon continued that its current forward sales position was £1.6bn, which is 30 per cent lower year-on-year.
Persimmon: ‘Building a platform for future growth’
Dean Finch, Persimmon Group’s chief executive, said: “Against a backdrop of higher mortgage rates, the removal of Help to Buy and significant market uncertainty, Persimmon has delivered a robust sales rate excluding bulk sales whilst growing the private average selling price in our forward order book and also securing cost savings.
“We are on track to deliver profit expectations for the year and are building a platform for future growth.”
He continued that the privates sales rate had remained “broadly consistent” through the period and its forward order book is 83 per cent higher than it was at the beginning of the year.
Finch said that pricing had stayed resilient and there was “continued positive momentum in the forward order book”.
He said reduced volumes at the start of the year had negatively impacted operating margins but looking forward it expected increased completions to improve margins.
Finch noted that it had maintained targeted investment in land opportunities and enhanced key capabilities to deliver high quality homes for customers.
“Subject to the challenges in the planning system we are determined to grow our outlet numbers in a disciplined way. Our new Space4 factory and investment in TopHat modular manufacturer will help us drive even greater efficiencies in the coming years. We are carefully strengthening our operations and national outlet network to position ourselves for future growth while protecting margins.
“With the historic under-supply of homes, the longer term outlook for housing remains positive. Persimmon has a proven track record of delivering strong returns through the cycle. I am confident that the combination of a relentless focus on our key enduring strengths while enhancing key capabilities, will again drive strong returns through the next cycle,” he added.
