Autumn rush fails to materialise for Persimmon

Persimmon Homes today confirmed that sales volumes have remained stable with sales prices and margins holding firm in Autumn 2010, despite below expected levels of visitors and reservations.
The company would usually expect these to increase after the summer lull, however this increase has not been seen this quarter. Weekly sales saw a gradual increase during September, and the company anticipates increasing sales revenues by around 10% this year, completing approximately 9,400 homes, an increase of 5% on last years figures.
Mortgage availability remains a major obstacle for customers who wish to purchase a home, especially first time buyers who do not have the required large deposits. Further recovery in industry output and sales will be dependent upon an increase in the supply of mortgage products on appropriate terms. However, the company is fully sold up for the current year and has over £460 million of sales already reserved beyond 2010, an increase of £40 million on last year.
The outlook for sales and volumes for the full year of 2011 is as usual dependent upon the forthcoming spring selling season. Persimmon remains optimistic that they will continue to successfully develop the business despite current challenging markets.
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