But housebuilding giant expects profit in year to be better than expected

Persimmon completed 6,652 homes in the six months to 30 June which it says was 鈥渟lightly lower鈥� than it previously expected.

The housebuilding giant, in a half-year update this morning, said its completions fell 10% from the 7,406 recorded for the same period the previous year.

It said the figure was lower 鈥渄ue to further delays in the planning system and material and labour shortages鈥�.

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Persimmon said rising energy costs and issues over materials and labour had helped put the brakes on output

It added: 鈥淩ising energy prices, supply constraints on certain materials and increased labour costs are driving upward pressure on total build costs.鈥�

Turnover for the period also dropped from 拢1.84bn to 拢1.69bn.

Despite the restricted build rates, Persimmon said it anticipates its half-year profit to be modestly above expectations due to 鈥渟trong demand and positive pricing conditions鈥�.

It said: 鈥淩ising energy prices, supply constraints on certain materials and increased labour costs are driving upward pressure on total build costs.

鈥淐urrently, house price inflation is continuing to offset these increases. As a result, we expect to deliver a housing gross margin that is slightly ahead year-on-year.鈥�

The group鈥檚 average selling price increased by 4% to 拢245,600 which it said was due to strong demand a reduction in the proportion of homes sold to housing associations.

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