Persimmon sees strong Q4 but “uncertainty” ahead

Persimmon has reported a particularly strong final quarter of 2023 with improved sales and increased completions, resulting in the company selling 9,922 homes in the full year, ahead of previous guidance but 33% below 2022 (14,868).

Despite the strong final quarter, Persimmon expects market conditions to “remain highly uncertain during 2024, particularly for first time buyers and with an election likely this year”.

In a trading statement issued today (January 10) ahead of its final results, Persimmon said that the firm successfully navigated challenging market conditions in 2023. The firm saw “a sustained pick up in interest in our homes throughout the year from the lows of Q4 2022, albeit with demand lower than previous years as a result of high interest rates and the removal of Help to Buy.” Overall, average private net sales were 0.58 per outlet per week for the year (2022: 0.69).

Persimmon saw a strong improvement in private net sales rates in Q4 at 0.41 per outlet per week compared with 0.28 in the same period in 2022. The firm’s forward sales position is up 2% on the prior year at £1,060 million (2022: £1,040 million), of which £499 million relates to private …