The firm said that this was ahead of previous guidance adding that there was “particularly strong delivery in Q4”.
The group’s private average selling price went up by around five per cent to around £285,700, which was attributed to a “mix of developments and house types sold”.
Persimmon added that the use of incentives doubled in 2023 to four per cent and its partnerships average selling price increased by eight per cent year-on-year to £152,850
The group continued that there was a “sustained pick up in interest” in its home through the year from the “lows” seen in Q4 2022, but demand was lower than previous years due to high interest rate and the removal of Help to Buy.
It continued that average private net sales were 0.58 per outlet per week for the year, down from 0.69 in 2022.
Persimmon’s forward sales position is up two per cent on the year before at £1.06bn and around £499m comes from private forward sales, a rise of four per cent from last year.
Persimmon’s outlook for 2024 still ‘highly uncertain’
Persimmon said that while private forward sales were ahead of last year it anticipated that market conditions would “remain highly uncertain” this year.
It noted that this would especially be the case for first-time buyers and that the general election could introduce volatility.
“However, mortgage rates are beginning to ease, and the response to our recent Boxing Day campaign has been positive, generating a substantial number of leads for our sales teams. Encouragingly, build costs continue to moderate which will benefit completions in 2024,” the housebuilder added.
Persimmon said that the “longer-term demand outlook for new homes remains favourable” and its strong private average selling prices, high quality land holdings and robust balance sheet made it “well-positioned for sustainable growth when conditions improve”.
Dean Finch, Persimmon’s group chief executive, said: “Persimmon performed well in challenging market conditions, delivering completions ahead of expectations in 2023 alongside enhanced quality metrics of our already five-star homes.
“Persimmon’s offering is resonating well with customers with sales rates relatively robust throughout the year. We have successfully balanced our need to control costs, whilst investing in the business to position it for sustainable growth when conditions improve.”
He added: “I would like to thank our colleagues, sub-contractors and suppliers for their commitment and support. Their hard work has helped ensure that Persimmon remains well positioned to serve customers across the UK who seek high quality, sustainable homes at a price they can afford.”
