UK housing jobs giant reports 50% growth
Persimmon, one of the UK's biggest contractors for building jobs in the housing market, has reported that its 2010 order book has grown 50% from this time last year.
According to a report on building.co.uk, Persimmon has said that it has secured a greater proportion of building jobs for private houses between 01/07/10 and 16/11/10. It reports that housing association jobs would be lower in volume, and that fewer private purchases were being made for apartment properties.
In 2009 Persimmon sold over 10,000 homes, taking £500 million for house sales due to complete in 2010. All of its new-build properties that will be ready by the end of 2009 have also been sold, a total of 9000 homes from 1st January to 31st december. It reports that it also has a further £500m of sales on the books for next year.
A statement released by Persimmon said that "the encouraging rate of sales achieved through the summer months" held steady through the autumn period. Prices have reportedly been maintained, and overall the firm has been able to increase its selling prices by 6% and improve its marginal returns.
Because of this, the firm expects that it will have reduced debt and that is borrowings will be "significantly lower" than the £400m guidance gievn at the half year results.
Concerns that UK job losses could have a knock on effect on the demand for housing jobs are still present however. Building.co.uk reports that Persimmon has "significant concerns" about the availability of mortages in the UK, particularly for first time buyers.
Its statement said: "Whilst we remain concerned about the potential impact on our markets of any significant increase in unemployment over the coming months, debt is reducing well ahead of our previous guidance, sales volumes have stabilised and pricing conditions are currently more positive"