Persimmon reduces headcount in “highly uncertain” market

Persimmon has seen an improvement in its private sale rate over the past five weeks, although it will still deliver significantly fewer homes for 2023 at around 9,500 against 2022’s 14,868. Its headcount is also likely to reduce by around 700 this year as it faces a “highly uncertain” market.

Issuing an update for the period from July 1 to November 6 2023 today (November 7), the volume housebuilder said its private sales rate had shown a “strong pick up” since the start of October at 0.59 against 2022’s 0.45. But 0.08 of the rate comprised investor sales, “with a series of small selective deals on targeted sites where appropriate”. In September, Persimmon launched its latest marketing campaign.

For the quarter three period, its average private sales per outlet per week were 0.48 against Q3 2022’s 0.63. It delivered 1,439 homes, 37% down on Q3 2022. Persimmon’s private selling price on completions rose 2% in the quarter on the prior year to £296,822.

The firm said near term conditions were likely to remain “challenging”. It said the hiring freeze it had in place had led to the likely headcount reduction. Reflecting the slower sales environment, build …