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01 May 2019 | 07:31

Persimmon home sales rate falls 5% after change in marketing process

House builder Persimmon said its weekly private sales rate per site had fallen 5% in the year to date, due to changes in its marketing practices.

Permission said the UK housing market had remained resilient, with high levels of employment and low interest rates continuing to support consumer confidence

However, it said that as part of plans to provide greater accuracy of anticipated moving-in dates, it was taking a more targeted approach to the timing of sales releases.

Home building was progressing to a more advanced stage before releasing homes for sale to the market where demand was strong.

'As expected, these measures have reduced the number of sales reservations made since the start of the year but we remain confident that, with the continuation of current market conditions, these sites will make a good contribution to sales once build has progressed and homes are released for sale,' Permission said.

'Overall, sales reservations remain in line with our expectations and we currently anticipate achieving a similar level of legal completions in the first half as last year.'

'The group's legal completions for the second half of the year will be similarly determined by our continued focus on progressing our build programmes ahead of sales release together with prevailing market conditions.'

Permission said its current forward sales position was 'strong' with total forward sales revenue, including legal completions taken to date in 2019, of £2.70bn, down from £2.80bn on-year.

The company had 350 active sales outlets for the year to date, down from 375, and its weekly private sales rate per site since the start of the year was 5% lower.

Pricing conditions remained, with the average selling price of sales to the private market in the forward order book being around £237,850, compared to £236,500 on-year.

Story provided by StockMarketWire.com
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