Persimmon PLC (LSE:PSN) reported flat profit for the first half of the year and said it was encouraged by looser planning laws under the new Labour government.
The FTSE 100 housebuilder completed 4,445 new home sales in the first six months of 2024, up 5% on the year before, turning around from a 10% fall in the first quarter.
It expects the number of home completions to be at the top end of its previous target for the full year, around 10,500, while its current private forward order book is up 28% at £1.12 billion.
Revenue rose 11% to £1.32 billion with an average selling price of £263,288, up 2.7% on a year ago.
Permission's profit margin decreased to 13% from 14% and underlying operating profit came in at £152.3 million versus £152.2 million a year ago.
Build cost inflation and the sales mix at the start of the year were the reasons given for the flat profit. However, for the full year, management expects the housing margin to be in line with last year.
Regarding planning, Persimmon stated it has achieved detailed approval for roughly 6,000 plots so far this year, adding that “encouragingly, circa 1,000 of these were achieved in July following the new government taking office”. Since 1 July, its net private sales rate is 0.69, up 68% on last year.
The company invested £195 million in land purchases in the first half, with a land bank now at 81,545 owned plots, of which 38,067 are owned with detailed planning.
“We are encouraged by the early announcements of the new government, particularly around planning,” the company said in commentary alongside the results, reporting a “strong pick-up” in enquiries and visitors that it believes will be further supported by the recent cut to the Bank of England base rate.