Housebuilder Persimmon records 23% profit surge

Ryan Bembridge

February 27, 2017

Housebuilder Persimmon saw its profit increase by nearly a quarter in 2016 in what it called a “confident” market.

The UK’s second biggest housebuilder made £774.8m in the year to December 31 2016, up from £629m in 2015 after seeing revenue rise by 8% to £3.1bn.

Persimmon built 15,171 new homes, a small increase of 600 from the year before, though the average selling price rose by 3.6%.

England one million homes short of demand

Chairman Nicholas Wrigley said: “Despite some understandable caution being exercised by consumers and corporates alike during the period ahead of the EU referendum, the result created an immediate and significant uncertainty in the markets.

“However, the vast majority of the group’s customers remained focused on exchanging contracts and completing their new home purchases.”

The company added: “The UK new build housing market remains confident with customer demand for new homes supported by compelling mortgage products.

“We are pleased with customer activity in the first eight weeks of the 2017 spring season.

“Visitors to our sites are circa 7% ahead year on year.

“We have experienced a normal week-on-week strengthening of the market on entering the 2017 spring selling season.”

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