In a trading update today Persimmon said completions were below what it expected, due to shortages and planning delays, but improving gross margin coupled with house price inflation was offsetting build cost inflation.
鈥淲e anticipate profit at the half year to be modestly above our expectations reflecting strong demand and positive pricing conditions,鈥 said chief executive Dean Finch. 鈥淥ur forward sales position is robust.鈥
Persimmon built 6,652 new homes in the first half of the year (2021: 7,406). The board had expected that number to be down but not by that much. Delays in the planning system and material and labour shortages were blamed.
Total revenues for the period were 拢1.69bn (2021: 拢1.84bn).
Average selling price increased by 4.0% year on year to 拢245,600 (2021: 拢236,199). This was partly due to the market and partly down to fewer homes built for housing associations.
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