Persimmon Says High Mortgage Rates Are Weighing On UK Home Sales
- Homebuilder says sales edged higher in first weeks of 2023
- The end of the Help-to-Buy program is also denting demand
A digger passes a partly completed home on a Persimmon Plc residential property construction site in Harlow, UK.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Persimmon Plc warned that higher mortgage rates and reduced affordability will weigh on the UK property market this year. Its shares fell.
Persimmon said that while it was too early to assess a full-year sales rate, should current rates continue for the rest of 2023, the company would sell between 8,000 and 9,000 homes, according to a statement Wednesday. That’s compared with almost 15,000 in 2022.