York-based Persimmon PLC has reported a huge drop in sales and home completions.

But the major housebuilder says it expects to reach the top end of its targets for 20223.

Persimmon today released its figures for the first quarter of the year, which showed net private sales per outlet of 0.62, down 37% from 0.98 a year ago, but up from 0.30 in the final quarter of 2022.

York-based Persimmon slows housebuilding as cost of living crisis bites

"Customer interest remains good, with our marketing campaigns continuing to generate healthy traffic to site and online," the firm said.

The firm noted that forward sales also dropped on a yearly basis to £1.7 billion, 30% less than £2.4 bn the year prior, but up compared to £1.0bn in the final quarter of 2022. The company said £1.0bn of sales related to private forward sales, down 47% from £1.8bn a year ago.

New home completions fell 42% to 1,136, from 1,950, which the company attributed to the reduced forward sales position.

Persimmon flats plans near York Barbican and StayCity back on

Despite the reduction in completions, Persimmon said it expects full-year new home completions at the top end of its 8,000-9,000 guidance, "if sales rates continue around the level seen year to date," the firm said, adding that it anticipates average open sales outlets will remain flat at 250-260 outlets during 2023.

Chief Executive David Finch said: "Our performance in the first quarter was as we expected and reflects the challenging trading conditions in Q4 2022 and consequent lower forward order book as we entered the year. Trading over recent weeks has offered some signs of encouragement with visitor numbers up, cancellation levels normalising and sales rates continuing the steady improvement evident since the start of the year.

Persimmon reveals challenges in trading update

"Looking beyond 2023, Persimmon has a strong platform from which to grow outlets and volumes as the market recovers. We have an excellent pipeline of new land opportunities to support growth in 2024, subject to planning, and we are encouraged by the early signs of improved customer confidence."

Persimmon shares rose 5.0% to 1,297.50 pence each in London this (Wednesday) morning.