Persimmon shares up 9% amid ‘mortgage free’ offer

Shares of York-based house building giant Persimmon plc rose as much as 9% to £14.10 on Thursday as it announced it is offering new customers a “10 months mortgage free” deal and the firm flagged a generally better-than-expected performance for 2022.

In a trading update ahead of its final results for the year ended December 31, 2022, Persimmon said its forward sales position stood at £1 billion at the end of last year, down 36% from £1.6 billion at the end of 2021.

However, its average selling price rose 5% to £248,600 in 2022 and new home completions rose 2% to 14,868.

In its outlook, Persimmon said: “Higher mortgage rates, inflation,

The group has entered this period of uncertainty with a strong balance sheet, including a robust cash position and industry-leading embedded margins in our land holdings.

“We currently anticipate average outlets will remain broadly similar during 2023 at 250-260 open selling outlets, although we have opportunities to increase this if demand improves as we progress through the year.

The longer-term demand outlook for new homes remains favourable.

“We have made significant progress over the past two years in augmenting the Group’s longstanding commercial excellence with renewed operational capabilities.

“As a five-star builder, with private average selling prices below the market average, high quality land holdings, and a robust balance sheet, Persimmon remains well-positioned for the recovery when it emerges.”

Persimmon CEO Dean Finch said: 

Customers remain at the heart of our business with our continued focus on quality and affordability.


“However, with high quality land holdings, a strong balance sheet and an experienced management team, Persimmon is well placed to navigate this challenging short-term backdrop,