Persimmon UK sees strong housing demand beyond tax exemption
July 8 (Reuters) – British home builder Persimmon Plc (PSN.L) on Thursday reported higher half-yearly earnings and said it expected housing demand to remain robust beyond a tax holiday, clients looking for larger homes after saving more during closings.
Government incentives such as tax relief, which ends in September, and a mortgage guarantee program, along with growing customer preferences for spacious properties better suited for remote working, have helped home builders plan for higher returns in the medium term.
“Customer demand for our new homes has been strong across the UK with healthy sale reservation rates throughout the period,” Managing Director Dean Finch said in a statement.
The country’s second-largest homebuilder, which offers a range of homes from studios to five-bedroom homes, said it plans to operate around 300 outlets on average throughout the year.
The FTSE 100 Company (.FTSE) said the average selling price of new homes sold term to owner-occupants was around £ 250,350, 3.3% higher than £ 242,400 a year earlier, while that forward sales stood at 1.82 billion pounds ($ 2.51 billion), as at the end of June.
York-based Persimmon said revenue for the six-month period ended June 30 was £ 1.84 billion, up from £ 1.19 billion a year earlier.
UK house prices rose 13.4% in June from the same month last year, the biggest annual increase since November 2004, according to mortgage lender Nationwide. Read more
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Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Subhranshu Sahu
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