Top UK housebuilder sees revenues soar in ‘healthy’ housing market

 

The UK’s second largest housebuilder, Persimmon Homes, recorded a 9% boost to its revenues in 2017 with full-year profits expected to be 20% higher than the previous year.

The company, which was founded in 1972 and has headquarters in York, sold 16,043 properties last year, a 6% rise on 2016, while the average selling price went up by 3% to £213,300. The total amount generated by the sales was £3.42bn, which is 9% more than 2016’s results.

A statement from Persimmon said: “We continued to experience healthy customer demand for new homes through the autumn sales season and the value of our forward sales on 31 December 2017 was 10% ahead of the prior year.”

The FTSE 100-listed group is hoping to catch up with the likes of housing giants Taylor Wimpey and Barratt Developments, and is expecting pre-tax profits for the year to be “modestly ahead of market consensus” when they are published next month.

It also intends to support “regional markets” – those outside of London – as it plans on investing in whichever areas offer the most opportunities.

Housebuilding hot topic

Persimmon stated: “We remain mindful of market risks including those associated with the uncertainty arising from the UK leaving the EU. However, we are keen to deliver further improvement in our housing output and remain ready to invest wherever the local planning environment is supportive.”

Persimmon’s positive results will see the CEO Jeff Fairburn pocket bonuses and benefits of more than £100m, while the top 150 employees will share a £500m pot, which is linked to shareholder dividends.

The bonus scheme has been labelled “obscene” by some commentators, and the chairman Nicholas Wrigley stood down last month in protest to the uncapped pay scheme.

Meanwhile, December saw the housebuilding sector enter its 16th consecutive month of growth, according to a survey of purchasing managers. This was partly put down to factors such as the government’s Help To Buy scheme, which has kept demand high for new-build properties.

Noble Francis, economics director at the Construction Products Association, said: “Activity remains high on site and that is clear from the number of cranes around…not just in London but even more so in Manchester.”

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Building

Top UK housebuilder sees revenues soar in ‘healthy’ housing market

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.