Housebuilder says demand is up since Brexit vote

STEPS CentrePersimmon Homes has reported an 8 per cent rise in full-year revenues to £3.14bn, noting that housing demand has increased since the Brexit vote.

In a fourth quarter trading update the housebuilder also reported average selling prices rose by 4 per cent to £206,700.

The Share Centre analyst Ian Forrest says: “Interested investors should appreciate that demand for houses has actually increased since the EU referendum last June with the forward sales book up 12 per cent on this point last year to £1.23bn.

“The group’s confidence was underlined by news that it has acquired a further 18,700 plots and opened 255 new development sites during the year.”

Forrest says that these were “good, solid results” from Persimmon. He says demand and supply factors keep the outlook for this company, and the wider house building sector, positive due to the shortage of affordable homes in the UK and favourable government policy to the sector.

He adds: “While there has been a limited affect from Brexit so far the longer term risk to the UK economy created by the UK’s decision to exit the European Union remains so we continue to regard the shares as higher risk.”