Persimmon sees rise in first-time buyers

Builder Persimmon said the number of first-time buyers has risen by over 35 per cent since the same period last year, a welcome boost to the industry that has seen first-time buyers frozen out of the market by high-deposit requirements.
By The Newsroom
Published 8th Nov 2011, 08:19 BST

The largest UK housebuilder by market value, based in York, said visitor levels and prices remained firm, while cancellation rates were at historically low levels, echoing comments from peers of a stable market.

Persimmon said weekly private sales rates from the start of September were 19 per cent higher than a year ago, and it is fully sold for the year, with £460m of sales already reserved beyond 2011.

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The housing market continues to tread water and housebuilders are facing further uncertainty as public spending cuts and rising unemployment dents confidence, a key factor in people buying new homes.

Persimmon added it is confident of delivering further margin improvement in the second half.

However it said that the average selling price for the full-year will be slightly lower than last year due to the rise in number of first time buyers, aided by the government’s FirstBuy shared equity scheme.

Shares in Persimmon closed at 496.3 pence yesterday, valuing the group at around £1.5bn.

Related topics:York