Housebuilder says seasonal uplift in reservations has failed to materialise

Persimmon has forecast a 10% rise in turnover for 2010 despite a subdued Autumn selling season.

The housebuilder said that despite a gradual rise in weekly sales in September the normal increase in visitor numbers and reservations in Autumn had not occurred.

Persimmon said lack of mortgage availability was still hampering buyers’ ability to raise deposits for new homes.

In an interim statement Persimmon said it expected completions to rise 5% to 9,400 for the year ended 31 December 2010.

The group said it had increased margins from 4% to 8% in 2010 and said borrowing would fall to £80m at the end of the year, a greater rate than previously forecast.

The housebuilder said it was aquiring land at a good margin. It forecast that the acquisition of 4,000 plots on 41 sites since June 30 would result in “excellent medium-term returns”.

 

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