Overcast

Overcast

max temp: 21°C

min temp: 17°C

Search

‘Confident’ housing market behind healthy profit rise for Persimmon

PUBLISHED: 08:35 27 February 2017 | UPDATED: 09:36 27 February 2017

Persimmon Homes. Picture: Persimmon Homes.

Persimmon Homes. Picture: Persimmon Homes.

Archant

Housebuilding giant Persimmon has notched up a healthy rise in full-year profit as it pointed to a “confident” housing market, despite concerns over Brexit.

The group, which has an East Anglian branch, said pre-tax profits rose 23% to £774.8m in the year to December 31, while revenue rose 8% to £3.1bn.

“Despite some understandable caution being exercised by consumers and corporates alike during the period ahead of the EU referendum, the result created an immediate and significant uncertainty in the markets.

“However, the vast majority of the group’s customers remained focused on exchanging contracts and completing their new home purchases,” Persimmon said.

Chairman Nicholas Wrigley added customer activity in the early weeks of the 2017 spring season has been “encouraging”.

The company said of current trading: “The UK new build housing market remains confident with customer demand for new homes supported by compelling mortgage products.

“We are pleased with customer activity in the first eight weeks of the 2017 spring season.

“Visitors to our sites are circa 7% ahead year on year.

“We have experienced a normal week-on-week strengthening of the market on entering the 2017 spring selling season.”

Buyer demand and house prices have been surprisingly resilient since the referendum, thanks largely to rock-bottom borrowing costs after the Bank of England halved interest rates to 0.25% in August.

Persimmon also flagged the “overall shortage of supply of housing in the UK” as a factor providing support to the market.

However, the company added: “We remain wary of the risks and increased uncertainties associated with the EU referendum result.

“The group is in a strong position to remain selective in its land replacement activities given the strength of its existing asset platform.”

Legal new home completions increased by 599 to 15,171 and the average selling price rose 3.8% to £206,765 last year.

Police are appealing for information after two incidents of violence in Colchester which they believe are linked.

The A12 has been named the most dangerous A-road in our region, according to data obtained on the number of crashes and casualties on our busiest roads.

It’s been a busy week across Suffolk and north Essex, here’s your catch-up guide to five things we learned this week.

If you heard the bang and fizz of fireworks but didn’t see them you probably missed the first day of the Ipswich Maritime Festival.

Yesterday East Anglia enjoyed bright and sunny spells but it looks like there could be a build-up of clouds later today.

Suffolk Constabulary chief constable Gareth Wilson writes about assaults on officers, how the force is improving its handling of non-emergency calls and the bravery of police dogs.

Members of the public are being advised not to approach a Hollesley Bay prisoner, who has absconded.

A man was arrested on suspicion of drug driving after his vehicle was stopped due to way it was being driving.

Ipswich Borough Council leader DAVID ELLESMERE writes about what needs to happen to solve Britain’s housing crisis.

An Ipswich woman will appear on Channel 5’s Blind Date TV show this Saturday in hope of finding love accompanied by her guinea pig.

Most read

Show Job Lists

Topic pages

Newsletter Sign Up

Ipswich Star daily newsletter
Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24