PERSIMMON, Britain’s second biggest housebuilder, yesterday forecast an upturn in confidence in the housing market next year after reporting a record 45 per cent rise in interim pre-tax profits.
Mike Killoran, finance director, admitted that the housing market had cooled in recent months after interest rate rises but predicted that consumer confidence would recover next year once people had adjusted to the higher loan costs.
Persimmon said it expected its average selling prices to be up 11 per cent by the end of this year. However, it said that most of the growth had come in the first half and it expected only modest price rises between now and the year’s end.
The company said that provided unemployment stayed low, demand for its homes would remain strong.
Persimmon said it expected to build just under 13,000 homes this year, roughly in line with market expectations. In the longer term it had the capacity to build 19,000 a year, even without buying a rival.
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Persimmon reported pre-tax profits of £220.3 million on turnover up 21 per cent to £1.04 billion for the half year to June 30. It said that it had completed 6,058 homes, up 9 per cent on this time last year, at an average price of £171,082 — against £154,110 last year.
The group said that to show its confidence in the future, its interim dividend is rising 30 per cent to 9.1p and indicated a total payout up 25 per cent.