One of those “too poor to build affordables” posts 30% profit rise

“LONDON (Reuters) – Britain’s second biggest housebuilder Persimmon said its first-half pre-tax profits rose 30 percent to 457 million pounds but it would remain cautious over land buying due to uncertainty around Brexit.

Persimmon, which built just over 15,100 homes across the country in 2016, said its volumes rose 8 percent to 7,794 units in the first six months of the year and that customer interest in its developments remained strong.

The firm said the housing market was still “confident” and its reservation rate had risen 2 percent in recent weeks but it would be prudent about buying land for future building, the biggest cost faced by most builders.

“We will remain cautious with respect to new land investment for as long as the uncertainties facing the market persist, particularly those associated with the risks to the UK economy resulting from the UK’s exit from the EU,” the firm said on Tuesday.”

https://uk.reuters.com/article/uk-britain-eu-court-idUKKCN1B120X

2 thoughts on “One of those “too poor to build affordables” posts 30% profit rise

  1. Volumes rise 8%, profits rise 30%.

    Which means that average profits per home rose by more than 20%, presumably in part because they didn’t have to build so many affordable homes on which they make less profit.

    It seems to me that someone needs to produce a dossier on every major housebuilder, and provide copies to local campaign groups in every LPA area who can then lobby DMC members and speak at DMC meetings to stop developers lying about their profitability.

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  2. Of course, if council officers and DMC members across the country were doing their jobs properly – i.e. to recognise that they work for US and not developers, and to probe whether the profitability statements are actually true – then local campaign groups would not have to do their job for them in this way.

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