Persimmon confident despite Brexit uncertainty

Persimmon homes has announced positive news for Britain’s property sector, reporting strong trading in first half of year.

Housebuilder Persimmon has shown confidence in Britain’s housing market following the recent Brexit vote, after revealing its sales of new homes rose by 6% in the first six months of the year.

The company reported the sale of 7238 new homes by June 30.

The average selling price rose 6% to £205,500.

Although Persimmon’s share price has dropped by almost a third since the UK’s vote to leave the EU, the company said it is too early to judge the effect of the Brexit vote, and that the market would continue to provide good opportunities for companies that would navigate changes in trading conditions.

“We believe that market fundamentals remain strong, supported by long term unfulfilled demand, and that the UK housing market will continue to provide good opportunities for those companies with the right strategic focus and the balance sheet strength to navigate future changes in trading conditions.

“We believe our focus on building traditional family housing in attractive locations for all purchasers from first time buyers to home movers will continue to attract customers in good numbers,” it added.

Persimmon said the expected value of future sales was £1.4Bn, which is level with last year, after they decided to push back the release of 35 new sites.

Since the referendum vote, shares in house builders and property companies have fallen due to the weakening of the UK economy.

 

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