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Persimmon in good health as sales rise and govt planning policies bear fruit

Date: 01 May 2025

2 minute read

1 May 2025

If you are covering Persimmon's Q1 trading statement, please see the following comment from Oli Creasey, head of property research at Quilter Cheviot:
 
"Persimmon’s trading statement this morning shows the company in good health, with key metrics all improving year-on-year. Trading outlet numbers are up by 5% and are expected to continue growing throughout 2025, and the sales rate per outlet has improved marginally to 0.74x – a figure that is now closing in on the industry’s long-term average rate of c.0.85x. Meanwhile, sales prices have improved 4% compared to the same point last year.
 
"There are also early indications that government changes to planning policy are starting to bear fruit. Persimmon reported 2,781 plots achieving approval in the first quarter, which is almost double the equivalent figure from 2024.
 
"Persimmon launched a new affordability scheme to its customers in March called 'New Build Boost'. Run in partnership with Gen H, a residential mortgage lender, the scheme aims to mimic the now closed Help 2 Buy scheme, with Gen H providing eligible buyers with a 15% equity loan and 80% LTV mortgage, meaning buyers only need a 5% deposit. The mortgage rates are relatively expensive at 6.29% for a five year fixed deal with an 80% LTV, but the equity portion of the loan is interest-free. Given the scheme has only been running a few weeks, it is too early to tell how popular it will be, but it is encouraging to see Persimmon seeking innovative solutions for buyers with stretched affordability.
 
"Persimmon has reiterated its 2025 guidance, and noted that no impact on sales rate or supply chains has yet been felt as a result of the changing macroeconomic environment. Management also noted that the company has no direct exposure to the US market or the recently announced tariffs, but is mindful of the economic uncertainties and the potential impact on mortgage rates and consumer spending."

Megan Crookes

External Communications Executive