Persimmon: Housing market still suffering amid lack of mortgage availability

| November 15, 2010 | 0 Comments
Persimmon: Housing market still suffering amid lack of mortgage availability

Housebuilder Persimmon today added to the gloom surrounding the housing market after suggesting the lack of mortgage availability continues to prevent a recovery.

The housebuilder, which is the UK’s second largest by market value, said that while it experienced a slight improvement in sales in during September - it was not the traditional pick-up noted at this time of year.

However, there was little evidence of this usual busy period which traditionally sees families flock to new housing developments as the school summer holidays end.

Persimmon echoed its rivals in warning that the lack of mortgage availability, particularly to first time buyers, continues to be a “major obstacle”.

The housebuilder said: “Further recovery in industry output and sales will be dependent upon an increase in the supply of mortgage products on appropriate terms.”

However, on a positive note, Persimmon said it was on target to complete 9,400 homes - 5% higher than 2009 levels.

It added that it hopes to double its profit margins year-on-year to around 8% and it has already reserved more than £460 million of sales beyond 2010.

In other news today, property website, Rightmove, has reported a major fall in asking prices in November – as vendors cut their prices amid desperation to sell their property before the Christmas slowdown.

According to Rightmove, asking prices for residential property in England and Wales fell 3.2% in the month – the biggest drop since December 2007.

The property website also noted that there was an “unseasonably high number” of unsold properties on the market as buyer demand continues to weaken.

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