Bloomberg News

Persimmon Average Home Price Falls on More First-Time Buyers

January 09, 2012

Jan. 9 (Bloomberg) -- Persimmon Plc, the U.K.’s second- largest homebuilder by market value, said its average selling price fell as the company sold more homes to first-time buyers.

Full-year revenue was 1.53 billion pounds ($2.36 billion), the York, England-based company said today in a statement. That compares with 1.61 billion pounds, the average of 16 analyst estimates compiled by Bloomberg. The selling price declined by 2 percent to 164,000 pounds.

“Whilst the general economic backdrop to the U.K. housing market remains challenging, we have experienced encouraging levels of visitors, resilient sales reservations, low cancellation rates and stable prices,” the company said in the statement.

Homebuilders are focusing on single-family houses and buying discounted land to improve their margins after sales volumes declined on tighter lending, government cuts and a worsening economic outlook. Prices across the U.K. will fall 2 percent this year, according to real estate broker Savills Plc.

The company completed 9,360 homes in 2011, down from 9,384 a year earlier.

--Editors: Ross Larsen, Andrew Blackman.

To contact the reporters on this story: Chris Spillane in London at cspillane3@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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