Search
 

No End of Boom in Housing Prices Yet, Says Persimmon

LONDON-House prices will continue to rise until the end of 2002 according to Persimmon, Britain's largest housebuilder, as it reported big increases in first half sales and profits. Despite fears of higher interest rates, demand for new homes remained strong.

By Steve Killick | Updated on August 29, 2001

LONDON-Britain’s biggest housebuilder, Persimmon, says it sees no end to the house price boom. House prices will carry on rising at least until the end of 2002 according to chairman, Duncan Davidson, with cheap mortgages and a shortage of land buyers are ‘queuing up’ for Persimmon’s homes. Lack of supply remains one of the key forces driving the price of homes upwards. ‘The industry is only building 150,000 houses a year compared with 200,000 in the 1980s,’ says Davidson

The average price of a Persimmon home jumped 15% to £119,645 in the six months to June, which chief executive John White put down half to the delivery of better quality homes and the other half to market conditions. Persimmon’s first-half profits rose 42% to £68.7 million although it is caught in a redundancy row at Beazer Group, the rival it bought in March for £610 million. Of 560 people made redundant, 25 have filed claims to industrial tribunals, claiming their severance pay was too low.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.