Persimmon profits rise on UK housing boom

Persimmon is the latest housebuilder to benefit from the UK's housing market recovery, reporting a sharp rise in profit before tax for the six months to 30 June. 

 

Pre-tax profit went up by 57 per cent to £208.9m for the period, compared to £132.9m the year before.

 

New home sales went up by 28 per cent and revenue was up by 33 per cent. 

 

It also reported that average selling prices had gone up by 4.3 per cent from £179,199 to £186,970.

 

The figures follow similarly positive results released by Bovis Homes yesterday, which reported a 150 per cent rise in pre-tax profits for the same period. This reflects the impact that the housing market's recovery is having on the back of UK economic growth. 

 

According to the Halifax house price index, property values in the UK increased by more than ten per cent in the financial year to July 2014. 

 

Chief executive Jeff Fairburn said: "Persimmon has produced another strong performance in the first half of 2014, taking advantage of the current market opportunities to deliver growth whilst strengthening the financial position of the business.

 

These results demonstrate the ability of the Group to successfully execute its operational objectives to deliver the ten year strategic plan launched in 2012.  We remain confident of Persimmon's continued successful development."