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Westbury/persimmon Homes

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Don't know if this is old news but I have heard that Westbury homes has been bought by Persimmon? (and jobs will go at Westbury HQ in Gloucester)

If so, what does this mean? It seems a strange time to buy a housing builder unless they got a bargain price due to low sales, but Persimmon should have low sales too.

I also thought Persimmon were more expensive than Westbury, that means they will be looking to raise prices.

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Don't know if this is old news but I have heard that Westbury homes has been bought by Persimmon? (and jobs will go at Westbury HQ in Gloucester)

If so, what does this mean? It seems a strange time to buy a housing builder unless they got a bargain price due to low sales, but Persimmon should have low sales too.

I also thought Persimmon were more expensive than Westbury, that means they will be looking to raise prices.

Westbury were a badly run company IMO

In a sector that is quite backward at the best of times - Westbury was headed by some 'traditional' new home directors

Hence Persimmon should be able to make some savings by more efficient management and economy of scales

Wesburys strategy to falling profits was to build twice the number of homes over the next few years, so I would imagine Persimmon, will continue that aim, except it will be under the Persimmon umbrella

Its not rocket science, remember the people that run these companies tend to be in their 50’s or 60’s and have seen HPC before

Quite simply, they know that prices will fall and that will affect the profits compared to the last several boom years

Hence if your profit margin drops, you can counter this by selling more

10,000 homes sold @ 50K net profit = 500mil

20,000 homes sold @ 25K net profit = 500mil

Same difference??

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If they are aiming to sell more and expect lower prices than this should help drive down prices on all houses. As a business they have to sell houses and will adjust prices to get volume - I hope!

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If they are aiming to sell more and expect lower prices than this should help drive down prices on all houses. As a business they have to sell houses and will adjust prices to get volume - I hope!

Assuming the boom doesn't 'restart' Persimmon will have an effect on the market unlike the previous HPC's

Can't remember the exact figures, but circa 88/89 Persimmon was probably selling 3000 homes per annum or less and companies like Taylor Woodrow probably sold less than 1500 and they were generally 'regional' companies

In 2006 TW has to sell 10,000+ homes and Persimmon should enter the FTSE100 and will need to flog 20,000 homes on a truly National scale

They cannot sit indefinately on homes that are not selling

They are not ex-pats with 6 months to spare in denial

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With such targets they should price aggressively - All good stuff I think.

In isolation Persimmon can’t bring down the market, but consider the following scenario in any part of the UK

Persimmon are selling 2 beds for 200K and they have 500 to sell

Ex pat is selling a 2 bed Victorian home in the same area for 200K

The ex pat home has more character and is more desirable, but the market is slow and those nasty buyers are not prepared to pay the ex pat 200K, thereby stalling his dreams of a wonderful life down under

Persimmon can’t wait so they have pulled the price down to 180K (maybe direct price reduction or via hidden discounts)

In the next month Persimmon shift 20 homes, but they still have 480 homes to go

The ex pat gets some viewings, but at 200K, it not only looks pricey, it is compared to the ‘better value’ Persimmon homes

If the ex pat gets desperate, 180K will be the price to sell at, however Persimmon still have 480 homes to shift and in effect if they have to compete with the ex pat so they will go lower if they have to - 170K maybe!

Is the ex pats home still worth 200K in the real world?

PS don’t forget Barratts, George Wimpey, Taylor Woodrow, David Wilson etc, all have ‘product’ to shift in the same area and they won’t be sitting back in denial offering 2 beds at 200K

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Back in the early 90's I bought a Westbury home. They did not comply with the planning regs whereby there should have been vents put in the bedrooms and lounge. They wanted to just come in and knock holes through the walls. The whole street protested outside there showhouse demanding compensation and a few minor incidents happened. Our chanting was "Buyer Beware Westbury Don't Care". Westbury's went to court and issued an injunction to ALL residents, approx 40 households, not to go anywhere near there property and building sites. Hasten to add the protests increased, it made TV news and the newspapers. Finally Westbury's gave us compensation basically to shut us up. Next we demanded a new builder to replace the joker of the builder who was installing these vents. He went through our radiator pipe and flooded the lounge.

I'm renting a Westbury (4 years old) and the workmanship is absolutely crap.

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  • 302 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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