HOUSEBUILDER Persimmon said today it expected to carry a "healthy" order book into next year, but warned the market remained vulnerable because of the impact of higher unemployment and problems with mortgage availability.
The Charles Church firm said the summer’s encouraging sales trends were maintained during the autumn, with the average selling price of homes reserved since the start of July being 6% higher at £173,000.
Forward sales are also well ahead of last year, leading to the healthy order book, but Persimmon issued a note of caution in a trading update today.
"While sales volumes have been consistent, we still have significant concerns regarding the availability of mortgages, particularly the higher loan to value products required by first time buyers," the company said.
Persimmon is also concerned by the potential impact on its markets of any significant increase in unemployment over the coming months.
In August, the company posted pre-tax profits of £9.8 million for the six months to June 30, down from £36.9 million in the same period last year,
Persimmon said today it was in a strong position to open new outlets and purchase land when it becomes available.
