Persimmon sees sales and prices pick up in ‘good start’ to 2024

Housebuilder Persimmon has revealed improving sales and property prices at the start of 2024 in a sign of easing pressures in the sector.

The Charles Church builder reported a 6% rise in private sales per outlet over the first quarter, while it said average sale prices in the private market lifted 6% to around £283,000 since the start of the year.

The firm added that its forward order book was up 18% year-on-year in the first quarter, keeping it on track to complete between 10,000 to 10,500 homes over the full year.

But it is still having to offer incentives on prices, at around 4% to 5% to boost demand.

The housing market has been dealt a blow by interest rates being hiked to the highest levels since 2008 and wider economic uncertainty.

But mortgage rates have eased back and a number of players in the sector are reporting improved trading.

Taylor Wimpey said earlier this week that the housing market was stabilising, though it still reported a dip in its sales rate.

Dean Finch, group chief executive at Persimmon, said the firm had seen a “good start to the year”.

He said: “We saw an improvement in sales rates alongside firm pricing.

“Trading over recent weeks has been encouraging with robust visitor numbers and enquiries, giving us confidence for the remainder of the year.”

But Persimmon cautioned that the build cost inflation and lower selling prices seen at the start of 2024 will impact first half figures, with the current pick up in demand being reflected in second half trading.