(Reuters) -British homebuilder Persimmon reported a 15% rise in its forward sales on Thursday as higher prices, affordability schemes and an expansion of its sales outlets supported demand amid consumer uncertainty ahead of the UK budget.
The company’s net private sales rate rose 9% to 0.76 sales per outlet per week for the period from July 1 to November 2, while it operated from an average of 272 outlets, up from 262 a year earlier.
Persimmon’s upbeat report stands out in a sluggish housing sector, where rivals including Barratt Redrow and Taylor Wimpey have flagged waning demand as buyers grow cautious ahead of potential property tax changes in the November 26 government budget.
“Persimmon’s performance compares well against peers such as Taylor Wimpey,” said Oli Creasey, head of property research at Quilter Cheviot, noting the difference may be partly due to Persimmon’s focus on the relatively affordable north of England versus London and the southeast of the country.
Shares of the FTSE 100 company were up 4.3% by 0915 GMT.
Private forward sales since July 1 increased 15% to 2.09 billion pounds ($2.8 billion), with 83% of this year’s expected private deliveries already exchanged or completed, leaving Persimmon on track to deliver 2025 profits and home completions in line with market expectations, it said.
Persimmon noted some softening in the market since the summer, with consumer confidence affected by ongoing uncertainties surrounding the budget.
The company has, however, depended on marketing initiatives such as loan support schemes and competitive pricing to support demand.
The homebuilder launched a second shared equity product called Rezide during the period, complementing its New Build Boost scheme introduced earlier this year.
($1 = 0.7451 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu and Emelia Sithole-Matarise)
