All eyes on Persimmon as the housing market stutters amid economic worries

THE STATE of Britain’s housing market will be brought into sharp focus this week when housebuilder Persimmon reports halfyear results.

While the York-based group has posted bullish figures since the Brexit vote, the market will scour Persimmon’s release for signs of any slowdown in a vital sector of the economy.

The firm updated on its sixmonth sales performance in July, reporting revenue growth of 12 per cent to £1.66bn, while the average selling price of its homes rose 3.5 per cent to £213,000.

Graham Spooner, investment research analyst at The Share Centre, is expecting another increase in turnover.

“Just like many of its peers, we should see revenues climb by double percentage points on the back of increased completions and slightly higher average house prices,” he said.

“However, commentary on current market activity will be keenly followed as concerns mount over the economic health of UK consumers.”

British households have seen their spending power come under sustained pressure from lacklustre wage growth and higher inflation on the back of the Brexit-hit pound, leaving fewer consumers willing take the plunge into home ownership.

A string of recent surveys from Nationwide, Halifax and the Royal Institution of Chartered Surveyors have “painted a gloomier picture” of UK house price growth, said Laith Khalaf, a senior analyst at Hargreaves Lansdown.

The Rics report showed UK house price growth slowing to a standstill, with a net balance of only one per cent of surveyors reporting rising prices, down from seven per cent in June.

Mr Khalaf said: “It must be said that the areas that seem to be creaking are at the very top end of the market, particularly in the South-East.

“As a nationwide builder with an average selling price of under £230,000, Persimmon has limited exposure to these type of properties.”