Persimmon's strong third quarter statement

UK homebuilder Persimmon has released its third quarter interim management statement expressing renewed confidence in the property market.

The company confirmed it has forward orders of £696 million (€889 million) – a 12% year-on-year increase, with 80 of its 100 sites planned across the country for the second half of 2014 having opened.

It reported particular success with its Space4 new home timber frame factory, which has enabled cost-conscious delivery of a growing number of properties across the UK.

The continued positive growth of the company follows its half-year results that showed its revenues stood at £1.2 billion (€1.5 billion) at the end of June. It had completed 6,408 properties compared with 5,022 in 2013 – up by 4%. Meanwhile, the average selling price rose by 4% to £186,000 (€234,000).

A management statement read, “We remain encouraged by the level of customer confidence in the UK housing market. Visitor levels have matched those of the prior year, despite the tough comparatives generated by the strong growth in interest in our sites following the Government’s Help to Buy measures in April 2013.

“As expected, we have experienced a return to a more traditional seasonal pattern to customer activity this year with reservation rates picking up with the onset of the autumn season after the slower summer weeks.”