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Persimmon Says Housing Market Is Stable

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http://www.bbc.co.uk/news/business-14627124

The housebuilder Persimmon has said the housing market "remains stable" but that the economic situation means it will "continue to be challenging".

In the first six months of 2011 it sold 4,439 properties, down 5% from 2010.

The average selling price was £162,647, 4% lower than the previous year.

Persimmon reported pre-tax profits of £40.5m, down 41% from the same period last year, due to a big one-off increase in how much it thought its land was worth last year.

In the first half of 2010, Persimmon reversed a previous write-down in land values of £70.7m.

The company reported an underlying profit of £59.7m to exclude the effects of that change, which was up 52% from the same period last year.

As a result, the company is increasing its half-year dividend from 3 pence per share to 4p.

"The significant improvement in underlying profitability of the business has resulted from the combination of gross margin gains and a more efficient capital structure," said chairman Nicholas Wrigley

Edited by exiges

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I wouldn't trust Persimmon as far as I could through their chairman. I bought a house form them and it was beyond shoddy. Badly build, badly designed and was threatened by their site manager. I take every opportunity to tell people to steer clear of them.

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Their profits depend upon how much they think their land is worth rather than what they actually manage to sell boxes for?! Sounds iffy.

What are their sales numbers like ?

If it's anything like the 2nd house market it must be dire.

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Well they're hardly going to say the housing market is fukked are they?

That would be like Cameron saying Britain was bankrupt.

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I thought builders had adjusted the mix in favour of family homes as opposed to flats so that in itself would push the average up. Plus add in our generous firstbuy subsidy and average prices still down 4% - doesn't look great does it?

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http://www.independent.co.uk/news/business/comment/david-prosser-mortgage-lending-is-weak-because-buyers-lack-the-required-deposits-2342718.html

Over at the British Bankers' Association (BBA), the story is a little different. Yes, mortgage lending was static again last month, the BBA says, but with the cost of home loans now at record lows, it is a lack of demand, rather than supply, that is to blame.

How then to reconcile these apparently contradictory statements? Well, here's the problem: while mortgage lenders have cut their rates – both fixed andvariable – and made more funds available, the number of products at 95 per cent loan to value (LTV) or more remains tiny. That is the issue for the first-time buyers: it is not that they are being turned down for mortgages, but that they do not have the deposits required to borrow. In other words, demand is low because supply of the right kind of mortgage is still constrained.

There isn't much prospect of that difficulty being overcome any time soon. The BBA's latest figures show that savers were able to put by only half as much last month as they managed in July 2010. And if it is getting harder to save for a deposit on a home, lenders, still running scared of bad debt, are not inclined to begin offering greater numbers of high LTV products.

So it's all down to a lack of mortgages and nothing to do with houses being overpriced....

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Their profits depend upon how much they think their land is worth rather than what they actually manage to sell boxes for?! Sounds iffy.

Exactly. Since when can you declare profit based upon an unsold asset?

Still I presume they paid tax on it.

I can understand that you would show a healthy balance sheet if you increased the value of the land, but at a time when value is decreasing then that would seem peculiar behaviour.

There must be more to it all.

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http://www.independe...ts-2342718.html

So it's all down to a lack of mortgages and nothing to do with houses being overpriced....

Or Uni fees - bet 'they' are regretting introducing that to coincide with a Bubble-stall.

Put housing back another decade before young pros have saved up-paid/most-some of the Uni debts off.

But wait - have they even got a job yet to commence either of the above?

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Their profits depend upon how much they think their land is worth rather than what they actually manage to sell boxes for?! Sounds iffy.

I've said it before, but the large housebuilders are just land speculators who will build any old shit they can get away with to maximize return on their land holdings.

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http://www.bbc.co.uk/news/business-14627124

The housebuilder Persimmon has said the housing market "remains stable" but that the economic situation means it will "continue to be challenging".

In the first six months of 2011 it sold 4,439 properties, down 5% from 2010.

The average selling price was £162,647, 4% lower than the previous year.

Persimmon reported pre-tax profits of £40.5m, down 41% from the same period last year, due to a big one-off increase in how much it thought its land was worth last year.

In the first half of 2010, Persimmon reversed a previous write-down in land values of £70.7m.

The company reported an underlying profit of £59.7m to exclude the effects of that change, which was up 52% from the same period last year.

As a result, the company is increasing its half-year dividend from 3 pence per share to 4p.

"The significant improvement in underlying profitability of the business has resulted from the combination of gross margin gains and a more efficient capital structure," said chairman Nicholas Wrigley

Volume down 5%, price down 4% (which may or not be mix).

Profit of £40.5m

Down on last year, but last year included a massive write-back of book value. Sounds like this year may be up on last year exckuding revaluation.

Not exactly a disaster I'd have thought.

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  • 335 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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