Customer measures reduce reservations at Persimmon

Persimmon has reported that sales reservations in the first four months of the year are “in line with expectations” and the firm expects to achieve a similar level of legal completions in the first half as last year.

In a trading update issued today (May 1) the firm said its plans to improve service to customers, in particular trying to provide greater accuracy of anticipated moving-in dates, requires sites to progress build to a more advanced stage before releasing homes for sale. These measures, said the firm, have reduced the number of sales reservations made since the start of the year.

Accordingly Persimmon has 350 active sales outlets for the year to date (2018: 375) and the weekly private sales rate per site since the start of the year is 5% lower than the previous year. The average selling price in the private market is around £237,850 (2018: around £236,500). The group has also maintained a “substantial” forward order book of new homes for delivery to housing associations.

Forward sales revenue, including legal completions taken to date in 2019, is £2,698 million (2018: £2,798 million).

Persimmon said that the increased uncertainties around the future performance of the UK economy …