Persimmon, one of the UK’s largest housebuilders, has revealed a 65% fall in profits in its half year results.
The company reported a profit before tax of £151 mln (€175 mln) for the period, down from £439.7 mln in H1 2022. Profit guidance for the year remains unchanged.
Total group revenue fell to £1.19 bn, from £1.69 bn the previous year.
The firm said it had completed 4,249 new homes, down from 6,652 in the previous period. Despite the decline, the average new home selling price grew by 4% to £256,445.
Dean Finch, group chief executive at the firm, said: 'Against a backdrop of higher mortgage rates, the removal of Help to Buy and significant market uncertainty, Persimmon has delivered a robust sales rate excluding bulk sales whilst growing the private average selling price in our forward order book and also securing cost savings.
'We are on track to deliver profit expectations for the year and are building a platform for future growth.'
Commented Charlie Huggins of investment advisor Wealth Club: 'The outlook for Persimmon is murky at best. House prices have held up better than expected so far, but cracks are starting to appear.
'And while interest rates should be close to peaking, this offers little succour for first time buyers. Until there is greater clarity on the future path of interest rates it seems unlikely the pressure on the housing market will ease any time soon.'
