4th Nov 2014 07:19
LONDON (Alliance News) - UK housebuilder Persimmon PLC Tuesday said it has around GBP696 million in sales reserved for 2015, an increase on last year's performance, and has sold its stock for the current year, buoyed by continued low interest rates which is fueling demand for new houses.
Persimmon said forward sales are up 12% on the same period in 2013 and selling prices remain strong as buyers return after the traditionally slower summer months.
"Selling prices remain robust with modest growth available in areas of higher demand, and particularly when new sites are successfully launched," the company said, though its private sale reservation rate is around 2% lower than the strong performance seen in 2013.
The housing market has seen a slowdown recently despite continued low interest rates, with mortgage approvals falling in September to the lowest level since July 2013, the Bank of England said last month. The number of mortgages approved for house purchases decreased to 61,267 in September from 64,054 in August.
Still, the company said opening new sites without delay remains challenging and it has secured sites with around 7,500 plots since July 1, 4,000 of which have come from its own land bank.
Persimmon said it expects to have a substantial cash holding at year-end even after investment in land and work in progress.
By Ian Edmondson
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