No adverse election effect, says Persimmon

Persimmon has increased legal completion volumes by 8% to 7,794 new homes (2016: 7,238) in the half year to the end of June.

The firm’s average selling price improved by 3.5% to around £213,000 (2016: £205,762) and revenue grew by 12% to reach £1.66 billion (2016: £1.49 billion).

In a trading update issued today the firm said it continued to experience good levels of customer demand since its last trading update on April 27 2017, with the market taking the snap UK general election in its stride. “Consumer confidence remains resilient and compelling mortgage rates continue to offer good support to new home buyers,” said Persimmon.

Group sales through May and June were healthy, leaving weekly private sales rate per site for the first half about 7% ahead of last year at 0.80 (2016: 0.75).

Persimmon expects its operating margin in the first half of 2017 will exceed the 25.7% delivered in the second half of the prior year.

The group has total forward sales of £1.6 billion, 18% higher than last year and a network of 375 active outlets. Sales in the second half of 2017 will be supported by opening a further 100 or so new sales …