2nd Jul 2014 06:53
LONDON (Alliance News) - Housebuilder Persimmon PLC Wednesday said it continues to benefit from the recovery in the UK housing market, with revenues in the first half of 2014 up 33% and total forward sales revenue up 28% on the previous year.
All the UK's major housebuilders have reported an accelerating recovery in the UK housing market through 2013 and into this year, particularly in the southeast of England where Persimmon has high exposure. The builders virtually halted new construction in the wake of the financial crisis as banks pulled mortgage financing and the ensuing economic crisis put off house buyers. The companies instead focused on paying down debt.
Persimmon said total revenues increased to GBP1.2 billion in the six months to June 30, from GBP900 million a year earlier. Persimmon said it completed 6,408 new homes during the period up from 5,022 a year earlier.
The FTSE 100 constituent's average selling price also increased 4% to GBP186,000 compared with GBP179,199 a year earlier. This was attributed to a continued increase in the proportion of larger family houses in its sales mix. Persimmon said "customer demand for good quality housing in attractive locations remains firm across all our regional markets."
The company said it has around 4,100 new homes sold forward into the private sales market which is 29% ahead year-on-year, with an average selling price of around GBP204,600.
At the period-end, Persimmon said cash holdings totalled GBP326 million compared with GBP48 million a year earlier, due to GBP122 million of free cash net inflow.
Perismmon's comments come on the same day as Nationwide reported that UK house prices increased by 1% in June and were 11.8% higher than in June 2013. The average price of a property in the UK is now GBP188,903 compared with GBP186,512 in May. In June 2013, the average price was GBP168,941.
The mortgage lender said that in seasonally adjusted terms, house prices reached their 2007 peak in the second quarter.
In London, Nationwide said the price of a typical property in London reached the GBP400,000 market for the first time, with prices in the capital now around 30% above their 2007 peak.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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