Housebuilder issues trading update anticipating growth despite slower trading in last six months

Persimmon, the UK’s biggest housebuilder, today said that it was on target to make more profit for the six months to 30 June, compared with the same period last year.

In a trading update, issued to the stock exchange ahead of its interim results on 23 August, Persimmon said that growth had been achieved despite a “slower period of trading” in the last six months.

The company achieved legal completions on 6000 units, which was roughly the same as the first half last year (6058). Persimmon said that its broad geographical coverage and ability to provide the sort of homes that were in demand facilitated the uplift in profit.

The average selling price was £184,000, which was a 7.4% increase on the same period last year. Persimmon has already clinched £1.8bn of sales in 2005 and said that although the use of incentives had risen slightly, margins have been maintained.

Chief executive John White said: “Whilst the market in some areas of the UK has slowed, there continues to be good demand in other areas, such as Scotland and the South West of England. Selling prices for nee homes remain resilient and we continue to experience good visitor levels to our show homes.”