Persimmon overcomes early impact of Brexit construction: Customer interest “robust” since EU exit vote

Housebuilder Persimmon reported a surge in profits and said demand has held up following Britain’s decision to leave the European Union.

Pre-tax profits increased 29% to £352.3 million for the first half of the year, while revenues rose 12% to £1.49 billion.

Persimmon chief executive Jeff Fairburn said: “While the result of the EU referendum has created increased economic uncertainty, customer interest since then has been robust.

“Our private sale reservation rate since July is currently 17% ahead of the same period last year.

“The group is now trading through the traditionally slower summer weeks, but customer demand remains encouraging and we anticipate a good autumn sales season.”

Persimmon’s shares surged after the Bank of England slashed interest rates to 0.25% from 0.5%, and unveiled measures worth up to £170bn.

With more rate cuts likely before the end of the year, housebuilders are seen as being among the biggest beneficiaries of the Bank’s economic recovery plan.

In Scotland, Persimmon’s completions were up 6% on the same period in 2015 at 7,238 homes. New developments are built under the names of Persimmon and Charles Church.

John Cassie, regional chairman for Scotland, said: “We remain committed to delivering much-needed new homes to our local communities.”

Current and new sites include Dunfermline, Perth, Kinross, Arbroath, Carnoustie and Cupar, in projects which will bring more than 647 new dwellings.

Persimmon has lodged a vision of its near 300 homes development on the edge of Arbroath with Angus planners.

The site at East Muirlands Road opposite Western Cemetery is allocated for around 230 homes in the proposed Angus local plan, and the company believes it is capable of accommodating 287 dwellings.

The builder’s intention is to develop the site in two phases, with 100 houses being built in the next five years.

Persimmon described the scale, massing and design as appropriate to the existing adjacent neighbourhood.

The firm’s Scotland North region based in Perth is overseeing the plans aimed at supporting over 1,000 jobs as well as delivering hundreds of homes.

We anticipate a good autumn sales season. JEFF FAIRBURN

John Cassie, regional chairman for Scotland, left, and plans for the firm’s proposed development in Arbroath. Persimmon said demand has held up following the EU exit vote.