Persimmon builds sales
Persimmon yesterday joined the chorus of property firms reporting trading conditions have improved in the third quarter and said home buyers were back in the market.
The UK’s largest housebuilder by market value said it met its sales targets for the year and booked a further £500m of sales for 2010.
Chief executive Mike Farley said: “The market is encouraging. Buyers are back. Prices have stabilised and there is growing availability of mortgages.”
The group also ruled out launching a cash call – unlike virtually all of its housebuilder rivals who have been forced to tap shareholders to bolster their balance sheets.
Persimmon added its debt position at the year-end will be “significantly lower” than its previous guidance of £400m, enabling it to purchase new land and open outlets.
“The focus now is on growing our margins, we are comfortable with our level of debt,” Farley said.
Hargreaves Lansdown analyst Keith Bowman said: “The contrast with the housing market of 2008 is palpable. and trading momentum continues to build.” Persimmon said the average selling prices of homes at £173,000 is six per cent higher than at the start of July.