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Persimmon: Sales Are Now Slipping

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) - Housebuilder Persimmon said total house sales and completions rose in the first half, despite
slipping in recent months on election and budget uncertainty.
Persimmon (LSE: PSN.L - news) , the UK's largest housebuilder by market value, said legal completions in the first half increased by 16 percent to 4,657 homes year-on-year, with the average selling price rising by 8 percent to 168,500 pounds.
"Whilst sales prices and margins have continued to increase from the beginning of the year, since early May we have experienced the normal seasonal slow down in private sale reservations," said the group in a statement on Tuesday.
The company said sales had been dented due to uncertainty prior to the government's emergency budget on June 22 but had been in line with its expectations since then.
Rival builder Taylor Wimpey (LSE: TW.L - news) said last week that sales had picked up since a drop-off around the election in May.
However, house price growth has tailed off in recent months. British house prices rose by just 0.1 percent in June, according to Nationwide Building Society, whilst lender
Halifax reported a drop in prices in May.
Consumer confidence has also dipped, falling for the fourth month in a row
in June over concerns about the fragility of the economy and the potential for a double dip recession.
Persimmon said total sales so far this year stand at 1.5 billion pounds, up from 1.3 billion last year.

Blame it on the election and the budget but in reality it is the economy stupid. The collapse of the banking sector and the need for emergency government subsidies to keep HPI on track is running into headwinds: most people can't afford to buy at these levels anymore. Without FTBs the chains lock up and with less irresponsible loans it is going to be rough days ahead for inflation in house prices despite all the stops being pulled by the VIs.

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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