Dean Finch

Build rates at the firm fell 30% to 176 units per week (Q1 2022: 252 units per week), leading to a 42% reduction in group completions in the first quarter to 1,136 homes (Q1 2022: 1,950 homes).

Persimmon said trading over recent weeks has offered “some signs of encouragement” and that it expects to complete the year at the top end of its completions estimates.

In a trading update, Dean Finch, group chief executive, said Persimmon has a good pipeline of new sites “expected to come through for 2024 to generate growth”.

“While the outlook remains uncertain, we are encouraged by the level of visitors to our sites and the normalisation of cancellation rates, which resulted in a steady improvement in sales rates across the period which has continued in early April,” he said.

“These early signs of increasing customer confidence are particularly evident in demand for our three, four and five-bed homes.

“While interest remains good for all our homes, sales to first-time buyers remain more challenging, reflecting stretched affordability and reduced mortgage availability at higher loan-to values, particularly in regions with higher house prices.”

He added: “If sales rates continue at the levels seen year to date, we would expect full year 2023 volumes to be toward the top end of the previously indicated range of 8,000 to 9,000 completions.

Mr Finch said: “Looking beyond 2023, Persimmon has a strong platform from which to grow outlets and volumes as the market recovers.

“We have an excellent pipeline of new land opportunities to support growth in 2024, subject to planning, and we are encouraged by the early signs of improved customer confidence.”