Housebuilder volumes better than expected

One of the UK’s biggest house builders, the FTSE 250-listed Persimmon, says its 2023 sales were better than expected - but it’s warning that 2024 may be tough.

Although last year’s output by the firm was better than it anticipated, it nonetheless delivered just 9,922 completed properties, down 33 per cent from the 14,868 completions in 2022. Average prices were up three per cent but this was well below the industry-level of inflation.

Persimmon says the “sustained” rise in interest in its homes throughout the year from the lows thanks to the fallout of the Liz Truss mini-budget hit demand.

The builder’s chief executive, Dean Finch, says the firm “performed well in challenging market conditions” with sales rates “relatively robust” over the year, adding:

“We have successfully balanced our need to control costs, whilst investing in the business to position it for sustainable growth when conditions improve.”

But he warns that conditions in the property market will remain “highly uncertain” during 2024, particularly for first-time buyers and as a general election looms in the UK.