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Housebuilder Persimmon's profits top £1bn

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Oh dear, only one day after Persimmons eligibility to the HTB scheme was being questioned dilute to their ‘business practices’ they announce these profits.

Good to see tax payers money being put to good use. 

How in earth can anyone let this continue? 

Link below and for those who don’t use the BBC a brief summary 

“ Persimmon has recorded pre-tax profits of £1.091bn - up from £970m last year.

It has also confirmed that acting chief executive Dave Jenkinson has been appointed to the role full-time.

His predecessor, Jeff Fairburn, left the company last year following a row over his £75m bonus package.

On Monday, shares in the company fell after its continued participation in the Help to Buy scheme came under scrutiny.

A source close to housing minister James Brokenshire said he was "concerned" by the company's practices.”

https://www.bbc.co.uk/news/business-47368308

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£1 Billion profit for building 8,000 houses. That £125,000 profit per house. Never mind numeracy skills, the government doesn't even know how to use a calculator.

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6 hours ago, byron78 said:

National scandal in my eyes. 

 

Shows how cynical the current Tory party leadership is. They know HTB pumps up house prices, they know that high house prices are bad for younger workers, but they reckon that there are more votes in high house prices than low ones so on we go with spending billions on destroying the life chances of millions of younger workers using money taxed from their wages.

I have no idea how the Tory party thinks it is going to win general elections from 2025 onwards when the priced out generations will form an electoral majority. They don't seem to care.

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39 minutes ago, Dorkins said:

Shows how cynical the current Tory party leadership is. They know HTB pumps up house prices, they know that high house prices are bad for younger workers, but they reckon that there are more votes in high house prices than low ones so on we go with spending billions on destroying the life chances of millions of younger workers using money taxed from their wages.

I have no idea how the Tory party thinks it is going to win general elections from 2025 onwards when the priced out generations will form an electoral majority. They don't seem to care.

I don't know either. 

Mood amongst Tories I know is that the future is bleak or we'll be able to herd enough folk to wing it. 

I think losing control of the media (as newspapers slowly die) will be a real nail as well. 

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Did you hear on the radio, I think it was radio 4 that they sounded like they were in the builders pockets. They asked about H2B pushing up their profits but the question went something like. I'm not suggesting Help To Buy inflates your profits but do you think its been helpful in making your business a success. Complete and utter sop to the house builders 

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I don't really understand all the outrage over this... people need to realise that we live under a Corporatocracy and that this kind of thing is perfectly acceptable in such a system.

Edited by nome

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12 hours ago, FIGGY said:

Did you hear on the radio, I think it was radio 4 that they sounded like they were in the builders pockets. They asked about H2B pushing up their profits but the question went something like. I'm not suggesting Help To Buy inflates your profits but do you think its been helpful in making your business a success. Complete and utter sop to the house builders 

Radio 4 is a disgusting boomer propaganda station.

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Lay off Persimmon everyone, they deserve every penny they have made.

I for one am 100% happy with the government's Help to Buy scheme.  True, it has inflated house prices, and in turn the profits of Persimmon and all the house builders.  But the houses they have built are of such high quality, they put the Victorians to shame.  And the directors are of such high moral fibre they make the Quakers look avaricious.

In a hundred years people will dream of living in a turn of the (21st) century Persimmon house.

Edited by Ballyk
spelling

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On 26/02/2019 at 09:35, peter_2008 said:

£1 Billion profit for building 8,000 houses. That £125,000 profit per house. Never mind numeracy skills, the government doesn't even know how to use a calculator.

Not defending Persimmon here but the 8,000 figure you're using is the number they sold under the HTB scheme. I imagine their profits were made from selling more homes than that, including those not sold under HTB. 

Edited by b_real

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1 hour ago, Ballyk said:

In a hundred years people will dream of living in a turn of the (21st) century Persimmon house.

Those who can find one then will certainly have a unique house after the rest have fallen down!

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Taylor Wimpey reports £811m in profits boosted by help-to-buy

 

Quote

 

Taylor Wimpey is the latest housebuilder to report bumper profits for last year, boosted by the government’s help-to-buy scheme and low mortgage rates, as it signalled a strong start to 2019 despite Brexit uncertainty.

Britain’s third largest homebuilder posted a pretax profit of £810.7m for 2018 – up 19% on the previous year – after selling 15,275 homes. Shares rose 3% making it one of the top risers on the FTSE 100.

Pete Redfern, chief executive, said the firm had yet to see any sign of a Brexit-related slowdown in demand.

 

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Roman Roady , heard the trailer for that , VIne was saying its the worst type of capitalism, which is a bit rich from someone raking in about 500k a year for playing a few records. What is the answer nationalisation or soviet style blocks of flats.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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8 hours ago, b_real said:

Not defending Persimmon here but the 8,000 figure you're using is the number they sold under the HTB scheme. I imagine their profits were made from selling more homes than that, including those not sold under HTB. 

Indeed you are right. According its annual report below, Persimmon built about 16,000 houses in total in 2018. So that's over £60,000 profit per house. I don't know... that's like saying instead of being dickslapped 125 times, I have ONLY been dickslapped 60 times...I suppose it is quantitatively better.

https://www.persimmonhomes.com/corporate/about-us/our-performance

 

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11 minutes ago, peter_2008 said:

Indeed you are right. According its annual report below, Persimmon built about 16,000 houses in total in 2018. So that's over £60,000 profit per house. I don't know... that's like saying instead of being dickslapped 125 times, I have ONLY been dickslapped 60 times...I suppose it is quantitatively better.

https://www.persimmonhomes.com/corporate/about-us/our-performance

 

I spotted that this morning quantitive error this morning, I have not posted for years but that deserves a hat tip as could not have put it better myself!

For the rule of thumb of 1/3 land 1/3 building cost and 1/3 profit their numbers seem pretty normal. In the world of lower and lower interest rates that rule of thumb has held true, it is just the government has stepped in to extend the “norm” now interest rate have nowhere to go.  

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23 hours ago, hughjass said:

Roman Roady , heard the trailer for that , VIne was saying its the worst type of capitalism, which is a bit rich from someone raking in about 500k a year for playing a few records. What is the answer nationalisation or soviet style blocks of flats.

I dont blame Persimmon at all...they have just made the most of the situation, the real fault was with HTB. The answer IMPO is to let the markets correct themselves. However the trouble was that would have bankrupted the lenders (the banks). The fault was with the western governments allowing these asset bubbles to run out of control for over a decade.

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17 hours ago, Roman Roady said:

I dont blame Persimmon at all...they have just made the most of the situation, the real fault was with HTB. The answer IMPO is to let the markets correct themselves. However the trouble was that would have bankrupted the lenders (the banks). The fault was with the western governments allowing these asset bubbles to run out of control for over a decade.

That's exactly right.

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On 26/02/2019 at 09:18, longgone said:

Remove planning permission if not built on 1 year after planning granted and then force the land to be re sold if not built on.

Not this again zzzzzzzzzzzzz

You have no idea of what happens after planning g is granted 

There is a site near me which had planning 12 months ago - it is delayed because there are [pylons which have to go underground.  Building cannot start until that is done and SEB say they cannot do it for about 12 months

Just ONE example there are 100s

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5 hours ago, happyguy said:

Not this again zzzzzzzzzzzzz

You have no idea of what happens after planning g is granted 

There is a site near me which had planning 12 months ago - it is delayed because there are [pylons which have to go underground.  Building cannot start until that is done and SEB say they cannot do it for about 12 months

Just ONE example there are 100s

So what 

New build shite is drip fed onto the market for plebs that like grey.

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  • 298 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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