Persimmon PLC (LSE:PSN) expects the housing market to remain “highly uncertain” in 2024 although it delivered more sales than expected in 2023.
But the housebuilder said moderating build costs should benefit new home completions in 2024 and the long-term outlook for new homes is still favourable.
The company said it completed the sale of 9,922 new homes in 2023, ahead of previous guidance, with a particularly strong delivery in the fourth quarter.
However, this was still 33% lower than the year before.
Persimmon said it had seen a sustained pick up in interest throughout the year from the lows of the fourth quarter of 2022, albeit with demand lower than previous years.
Overall, average private net sales were 0.58 per outlet per week for the year (2022: 0.69).
It also reported an improved start to 2024 with private forward sales ahead of last year driven by the year-on-year improvement in fourth-quarter sales rates.
Private average selling prices increased in 2023 by around 5% to £285,770 which largely reflected the mix of developments and house types sold, the company said.
Pricing was firm in the first half of the year, with some softness and increased use of incentives experienced during the second half.
Full-year operating margins are expected to be in line with those delivered in the first half at around 14%.