Persimmon has eyes on Castle Point. Their Jotmans Farm proposal, turned down by the Secretary of State, is due to be challenged on Appeal in the High Court.
Previously they have Withdrawn their proposal for 265+ dwellings at East of Canvey Road, Canvey Island.
Persimmon’s half year returns indicate a startling uplift in Profits And Land Bank sites!
One of the UK’s largest house builder has increased its profits by 30% as its Land Bank nears 100,000 Sites!
Telegraph Business Reported;
FTSE 100 housebuilder Persimmon has reported a 30pc jump in profits in the first half of the year as it avoided the effects of a slowdown in the housing market.
Persimmon’s pre-tax profits rose 30pc to £457.5m in the six months ended June 30, while revenues were up 12pc to £1.66bn.
It built 556 new homes in the period, an increase in completions of 8pc to a total 7,794, as it made the business more efficient. Its average selling price rose 4pc to £213,262.
“The market remains confident,” said chief executive Jeff Fairburn. “Customer interest in our developments remains strong with encouraging levels of interest through both our websites and our sales outlets as we trade through the quieter summer weeks.
“Whilst we remain vigilant to changes in market conditions we also recognise we are in a strong position to take advantage of opportunities that arise.”
However the company said it would “remain cautious” when it comes to investing in new land, primarily due to Brexit-induced uncertainty facing the economy.
It was boosted by the Government-backed scheme Help to Buy, which Anthony Codling, an analyst at Jefferies, said was “acting as a bullet-proof vest for the new-build sector allowing it to ride above the challenges faced by the second hand market”.
The housebuilding giant sells around half of its homes using the scheme, which allows buyers to purchase a new-build property with a 5pc deposit. Earlier this month, Persimmon’s share price fell 6.6pc in one day after a news report suggested that Help to Buy could be ended before its planned date of 2021. After the Government confirmed it would not, the share price rebounded.
Mr Fairburn said: “We should take confidence from the fact the scheme works very well. It does what it was intended to do. The Government should be pleased it stimulated housebuilding, and more people can buy new houses.”
Laith Khalaf, a senior analyst at Hargreaves Lansdown, said: “The latest results from Persimmon have a bit of swagger about them, and well they might, with profits rising by almost a third despite a slowdown in economic growth.
“The UK housebuilding sector is still sitting pretty, with interest rates staying low, the Help to Buy scheme supporting demand, and a lack of supply helping to boost prices.”