Persimmon is one of the largest housebuilders in the UK. In 2016 we completed 15,171 home sales to customers, 599 more homes than in 2015.
More than 150,000* new homes were registered in the UK by the NHBC in 2016, the second highest in almost a decade. Our share of the new homes market was c. 10% in 2016. The rise in the number of mortgage approvals over the last few years has allowed housing sales to increase. There were c.67,000◊ monthly mortgage approvals for home purchases in 2016, higher than the average of 55,000◊ per month since the beginning of 2008 but still below the long term average since 1993 of 83,000◊ per month. As we have previously said, we support the tightening of FCA regulations regarding new lending which should lead to a more sustainable housing market in the longer term.
In the recent Housing White Paper, the Government announced plans to help over 200,000 people become home owners by the end of the parliament. The Government has stated that the Starter Homes Initiative and the Help to Buy shared equity scheme, which has been extended until 2021, will help to achieve this. The Government estimates that the UK needs to build around 250,000 homes each year to meet future housing needs.
The renewed impetus given to securing further improvements to planning processes provided by recent Government initiatives should assist the delivery of more land for development and support the required increase in new home building. We look forward to playing our part in helping to solve the country’s significant shortage of homes having increased our sales of new homes by 60% since 2012.
* Source: ONS
◊ Source: Bank of England