In turn, Persimmon on Tuesday said pretax profit rose to
Persimmon said legal completions increased 28% to 6,408 new homes sold, compared with 5,022 a year earlier. The average selling price of its properties also increased 4.3% to
Persimmon said it experienced better market conditions in the first half of 2014, supporting improved prices and sales rate. The company said its private sales rate for the six months was 17% ahead of the prior year supported by the
Help to Buy has been a welcome boost to housebuilders, which have reported an accelerating recovery in the
The first part of the scheme - which is now a year old - makes buyers of newly built homes eligible for a 20% equity loan from the
Persimmon said underlying gross margin improved by 220 basis points to 21.9% from 19.7%.
At an operating level, the company said it benefited from 175 new sites opened last year in addition to 90 new sites in the first half of 2014. Persimmon said these new sites "refreshed our strong outlet network whilst continuing to reduce the cost of land recoveries on legal completions."
The company said at the period-end it had 82,250 plots of land owned and under control compared with 70,716 plots a year earlier. Within this consented land bank, 43% of these total plots were previously held as strategic land which will support the group's delivery of strong margins in the future, Persimmon said.
Looking ahead, the company said it expects to open around 100 new development sites during the second half of 2014 in addition to increasing build rates to meet customer demand.
Persimmon also said it expects mortgage lenders to continue to actively develop their participation in the
This comes on the same day the mortgage lender Nationwide reported a drop in net mortgage lending to
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