Persimmon reports increased housing demand since Brexit vote

In a trading update, Persimmon has reported an 8% rise in 2016 revenues to £3.14bn with legal completion volumes increasing by 599 new homes to 15,171. The Group's average selling price increased by 4% to £206,700.

The firm says sales reservations through the autumn season remained strong with healthy customer demand for new homes.

It added that buying a new-build home "remains a compelling choice supported by competitive mortgage offers which continue to make a new home purchase very affordable".

The Group opened 255 new development sites across the UK during the year and is building on all sites which have an implementable planning consent.

Persimmon says it continues to see good opportunities to acquire additional land "whilst remaining mindful of the risks associated with the uncertainty arising from the UK's decision to leave the EU".

Ian Forrest, investment research analyst at The Share Centre, commented: “In a fourth quarter trading update today housebuilder Persimmon reported an 8% rise in full year revenues to £3.14bn and said average selling prices rose by 4% to £206,700. Interested investors should appreciate that demand for houses has actually increased since the EU referendum last June with the forward sales book up 12% on this point last year to £1.23bn. The group’s confidence was underlined by news that it has acquired a further 18,700 plots and opened 255 new development sites during the year.

“While there has been a limited affect from Brexit so far the longer term risk to the UK economy created by the UK’s decision to exit the European Union remains so we continue to regard the shares as higher risk.”