UK homebuilder Persimmon flags slowing demand amid surge in mortgage rates

Added CEO comment and background

November 8 (Reuters)persimmon PSN.LIt is the second largest homebuilder in the UK.

The UK housing market has shown signs of slowing in recent months as rapid inflation hit consumer budgets and the Bank of England raised interest rates. On top of that, the government’s September mini-budget has caused mortgage rates to skyrocket.

“Rising interest rates and broader economic uncertainty are clearly impacting mortgages and customer behavior,” Chief Executive Officer Dean Finch said in a statement.

UK house prices fell With the highest monthly rate since February last year, HSBC analysts said in October after the government’s £45 billion ($51.61 billion) tax cut package wreaked havoc on the market. warned The UK is on the brink of a housing slump.

York-based Persimmon, which offers a range of homes from studio apartments to five-bedroom homes, said its average weekly net private sales rate per store from July 1 to November 7 was up from the previous year. was 0.60 compared to 0.78 for In his last six weeks of the reported period, it dropped further to 0.48.

($1 = £0.8720)

(Reporting by Aby Jose Koilparambil, Bangalore; Editing by Subhranshu Sahu)

((abyjose.koilparambil@thomsonreuters.com; +919986528692;))

The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.

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