Quality control hits home sales at Persimmon

DeveLOPeR Persimmon built fewer new homes last year as it tried to shift its focus from quantity to quality.

The company, still reeling from criticism over the £82m bonus paid to former boss Jeff Fairburn, said it built 15,855 homes in 2019 – around 4pc lower than the 16,449 it completed the previous year.

The fall came as Persimmon attempts to improve the quality of its homes under chairman Roger Devlin following a scathing report that lambasted it for shoddy workmanship. Bosses were told they were focusing too much on building as many houses as possible but failing to ensure the homes were habitable for the long term.

Chief executive Dave Jenkinson, who scooped £43m from the same bonus scheme that eventually cost Fairburn his job, said his priority was to build better homes and improve customer service.

‘Central to this plan is putting customers before volume,’ he said.

The fall in homes sold meant full-year revenues hit £3.6bn in the 12 months to December 31, down 2.4pc compared with a year earlier. The average selling price was just £137 more than a year ago, at £215,700, the company added.

Persimmon also announced non-executive director Claire Thomas, who joined the board in August, has decided to quit. She said: ‘In my time on the board I have seen clear and determined efforts to transform the business and I wish Persimmon the best in their ongoing efforts.’

÷ housebuilder vistry – formerly known as Bovis homes – said 2019 profits are expected to be at record levels – above market expectations of £181.6m – despite bosses warning that Brexit concerns and uncertainty in the run-up to the General election have hit house prices.