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Supply chains and lack of labour are slowing building, says Persimmon boss

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Persimmon's shares have been on the up in the last 12 months despite housing woes
Persimmon's shares have been on the up in the last 12 months despite housing woes.

The boss of Persimmon, one of the UK’s largest housebuilders, has cautioned that planning system delays, disruption in material supply chains and challenges in securing labour have weighed on completions.

The housebuilder completed 6,652 homes in the six months to 30 June, down from 7,406 in the same period last year, according to its latest trading update.

The group’s total revenue has dwindled as a result, slipping from £1.84bn last year to £1.69bn.

“We anticipate, however, profit at the half year to be modestly above our expectations reflecting strong demand and positive pricing conditions,” group chief executive Dean Finch said in a statement today, adding that forward sales are looking “robust”.

Persimmon is one of many housebuilders in the UK currently reaping the rewards of record house prices, which have been spurred by a lack of supply.

The FTSE housebuilder’s average selling price has increased by four per cent over the past 12-months, to around £245,600 in the first half of this year, nearly £10,000 more than a year ago.