Housebuilder Persimmon has seen an increase in the number of houses it completed though its activity is still well below levels seen before a slump in the housing market.
The York-based company has released results for 2024 in which its new home completions rose 7% to 10,664 and revenues went up 15% to £3.2bn. Underlying operating profit also rose to £405m and the company is predicting further recovery in its volumes, targeting between 11,000 and 11,500 new homes this year.
Persimmon said it had entered 2025 with an improved forward order book and was seeing increased activity at its sites this year. An increase in selling prices mean its private forward order book was currently 27% up on the same position last year, it said.
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Persimmon and many of the 海角视频’s other major house builders saw major growth during the period of low interest rates and Government help-to-buy schemes, followed by significant contraction in the last few years as interest rates rose and wider economic conditions put people off house sales.
Today’s results from Persimmon continue recent signs that a recovery is taking hold in the market, with companies buoyed by the Government’s plans to change the planning system and make housebuilding easier.
Persimmon group chief executive Dean Finch said: “Persimmon's disciplined investment and significant operational improvements in recent years has created a stronger business. This is demonstrated by our growth in 2024, with completions, outlets and profit all up.
“The underlying market fundamentals remain strong and we are encouraged by the further improvement in our sales rates in the early weeks of this year. The Government's welcome planning reforms and pro-housebuilding agenda demands more of the high-quality, affordable homes which are Persimmon's core strength, providing a positive tailwind.
“With our strong platform in place, we are targeting further growth this year and are confident the business will grow margins, returns and shareholder value over the medium term."
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Persimmon last year saw its operating profits more than halve and even the recovery in its activity is still well below recent years, when it completed more than 14,000 homes.
The results have been published on the same day that the Government is promising "seismic reforms” to the planning system with its Planning and Infrastructure Bill. The bill will include plans to streamline the planning process and change the way developers meet environmental obligations with the hope of helping the Government deliver on its promise to build 1.5m homes by the next election.
Deputy Prime Minister Angela Rayner said the Government would create “the biggest building boom in a generation” by “lifting the bureaucratic burden which has been holding back developments for too long”.