Our Strategy/Five Key Priorities

We are proud to offer attractively priced homes for the benefit of our local communities. The Group offers three brands across its UK-wide network of sales outlets, delivering a range of house types in well serviced locations providing customers with high quality, sustainable and energy efficient homes at prices they can afford. Our average private selling price of £272,206 is over 20% below the UK’s national average selling price¹, demonstrating the enduring strength of our value offer to customers.

We have strengthened our offering to customers both in the house types we provide and the developments we design, through to the improved quality of our homes.

“Our customers want attractively priced, high quality, sustainable and energy efficient homes, as well as good customer service. Putting customers at the heart of our business, we have, and will continue to, enhance both our service and product offerings in order to meet their expectations.”

Sonia Da Costa
Chief Customer Experience Officer

^{1. National average selling price for new build homes sourced from the UK House Price Index as calculated by the Office for National Statistics from data provided by HM Land Registry.}

The Group has a well-established strategy of disciplined land replacement. This is a key driver of value for the business and one of its core strengths. When reviewing each land investment opportunity, we consider the needs of local government and the local communities we serve. This is at the heart of our land investment and management strategy, ensuring that we develop sustainable locations in areas of greatest housing need where our customers love to live and work across the UK.

We aim to develop natural extensions to existing communities that have the lowest environmental impact. Our 30 operating businesses each have highly experienced in-house land, planning and design teams with excellent knowledge of the local areas that they serve. They are supported by our Group Planning department, combining the strength of local knowledge with shared best practice across the business.

“The Group’s high quality land holdings are a key strength for the business. During the year, we invested in some exciting land opportunities adding 14,670 plots across 66 sites into the Group’s portfolio, a plot replacement rate of 99%.”

Dean Finch
Group Chief Executive

Minimising financial risk and making well-judged assessments through the cycle.

The Group’s strategy, which has been implemented over a large number of years, recognises the inherently cyclical nature of the UK housing market. The Group’s robust balance sheet and high quality land holdings are key to delivering long-term sustainable value for the benefit of all our stakeholders.

We achieve this by: 

• Maintaining high quality land holdings, ensuring we can apply a disciplined approach to our land replacement, only investing when there is a clear opportunity to deliver value. The Group’s land replacement, acquisition and management processes are key features of our approach. 
• Placing customers at the heart of our business by pursuing developments that deliver properly integrated neighbourhoods which provide access to good quality new housing for the benefit of all potential occupiers, including those families on lower incomes. 
• Exercising discipline and strong control over the Group’s outlets and levels of work in progress across all of our developments, ensuring that our investment appropriately aligns with current market conditions. 
• Engaging with and managing our supply chain and entering into robust tendering processes to help manage our costs. 
• Vertical integration and the manufacture of some key material Elements.
• Maintaining strict levels of governance and financial discipline across all our operational and financial processes.
• Improving our build programme management through strong Group wide controls, the use of the Group’s core house type portfolio across our developments and investing in technology to fully integrate our operations. 
• Embedding sustainable practices in the procurement and management of our working capital.
• Investing in technology and innovation to keep us at the forefront of industry standards, while maintaining operational efficiency.

“Persimmon’s well-established strategy of well-judged capital deployment through the cycle and maintaining financial flexibility has provided a resilient balance sheet and high quality land holdings from which we have the expertise to deliver sustainable returns for all our stakeholders.”

Dean Finch
Group Chief Executive

Persimmon is committed to leaving a positive legacy in the communities in which we work.

While we are a national business, operating across the UK, we are proud to contribute to widening opportunity for our local communities. Social impact is one of our values – we build homes for the future in sustainable communities.

We are proud to provide attractively priced sustainable and energy efficient homes to meet the demand of our customers – our average private selling price of £272,206 is over 20%¹ below the UK national average. Through our on-site development, we are also providing local people with local jobs – we are pleased to support approximately 40,000 construction jobs² across our sites.

“The Group introduced a new Placemaking Framework in the year to ensure that all our developments create a sense of place for our customers and put communities at the heart of our developments.”

^{1. Based on the Group’s private average selling price of £272,206 for the year to 31 December 2022 compared with the national average selling price for newly built homes sourced from the UK House Price Index, as calculated by the Office for National Statistics from data providedby HM Land Registry.}

^{2. Estimated using an economic toolkit.}