Persimmon PLC (LSE:PSN) said it continues to see a steady recovery in housing demand with orders up 17% but costs are rising again with the Budget to add to the problem.
“We are seeking to mitigate the impact of these cost increases through robust commercial controls and other management actions,” it said.
Sales per outlet from the start of July to 5 November rose to 0.7 from 0.51 including bulk sales, while the value of private sale orders is up to £1.45 billion from £1.04 billion.
“Visitor numbers and enquiries remain strong and sales rates continue to be well ahead of the prior year,” said Dean Finch, chief executive.
In the third quarter, Persimmon sold 1,416 homes (2023: 1,439) including a 3% increase in private homes to 1,267 (2023: 1,234) and 149 Partnership homes (2023: 205).
Pricing was also steady, it added, with incentives continuing to run around 4-5% on average.
On fire safety remediation on apartment blocks, the builder said works are underway or complete on 72% of known developments with the bulk of works to be completed over the next two years.
Persimmon added it continues to assess the implications of the recent Budget having already seen some signs of build cost inflation beginning to emerge in price negotiations for 2025.
Costs will also be impacted by new building regulations and the employer national insurance increases announced by the Chancellor, it said.