Housebuilder Persimmon unveils jump in profits

HOUSEBUILDER Persimmon has reported another big lift in profits as it continues to benefit from a helpful backdrop in the new homes market.

The Help To Buy scheme is creating a greater demand for new houses. Picture: Getty

The group, which trades as Persimmon Homes, Charles Church and Westbury Partnerships, said legal completions jumped 17 per cent to 13,509 last year, with averaging selling prices up 5.3 per cent to £190,533. Profits rose 44 per cent to £475 million after rising by nearly 50 per cent the previous year. Revenues improved 23 per cent to £2.6 billion in 2014,driven by stronger lending by the major mortgage providers and the impact of the Government’s Help to Buy scheme on demand.

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Persimmon said it had also made an encouraging start to 2015 with current total forward sales of £1.49bn, 5 per cent ahead of the previous year. The company said the market returned to more balanced conditions in the second half of 2014, although it added that the Chancellor’s reduction of stamp duty on house purchases for most homebuyers was supporting sentiment and reducing costs for potential buyers.