Persimmon sees profits increase as demand grows from first-time buyers

The York-based homebuilder, which trades with the Persimmon Homes, Charles Church and Westbury Partnerships brands, said a buoyant market supported by the availability of mortgages for first-time buyers and first-time movers drove profits up 44 per cent in the 12 months to December 31.

Revenues rose 23 per cent to £2.6bn for the same period.

Legal completions increased by 17 per cent to 13,509, while average selling price lifted 5.3 per cent to £190,533. Completions rose 36 per cent over a two-year period.

As a result of the strong performance, the company said it would accelerate its capital return programme for shareholders, bringing a £290m payout three months forward to April 2.

So far in 2015 forward sales, including completions to date, put the group five per cent ahead of the same period in 2014, although the number of sites is down slightly due to the timing of development completions and planning approvals. Group chief executive Jeff Fairburn told The Yorkshire Post the firm had been working to deliver homes quickly in order to keep up with demand.

He said: “We’ve got around 385 sites at the moment which we’re trying to increase. The rate of sale that we’ve seen has been encouraging and demand has been improving.”

Stamp duty discounts and Help to Buy helped stimulate sales, Mr Fairburn said, alongside the availability of lending at the affordable end of the market.