Persimmons postpones all future developments

Persimmons has postponed all future developments until the mortgage market improves.

A statement released from the housebuilder today reveals it has put a stop to scheduled new sites until the property sector stabilises.

The statement says: “Because of the uncertainties of the global economy and the UK lending environment it is difficult to predict when the market will improve.

“We are therefore focussing on management of cash flows within the business to ensure that our balance sheet strength is maintained.”

Stuart Law, chief executive of Assetz, says: “Today’s announcement has come as no surprise and only supports what I have been saying since last September. Developers are not starting work on new sites in the current climate.

“Persimmon is not the first and it will by no means be the last to announce a freeze on new starts.”