Persimmon banks on land investment

In a trading update the company said the first six months of 2012 represented an excellent start to its strategic plan to develop a larger business on the back of a significant and high quality landbank.

Persimmon invested £150m in land this year and now has planning permission for 63,800 plots.

“While market conditions have been relatively stable during the first half of the year, sentiment within the UK housing market continues to be impacted by the continued weakness in the wider UK economy.

However, we remain confident that we will be able to operate successfully in the current market,” a spokesperson said.

Persimmon completed 4,712 homes in the period, up 6%, with sales rates running 18% ahead and turnover up 13% at £805m. The company opened 65 new sites and achieved a 7% increase in average house prices at £171,400.