York-based housebuilder Persimmon PLC says its outlook for 2024 remains positive despite a modest year, as "challenging market conditions" begin to ease.

Persimmon completed 9,922 homes in the 12-months ended December 31, down a third from 14,868 in 2022. Average selling prices rose slightly to £255,750 from £248,616 over the period.

Land spend for the year was around £430.0 million, £260.0 million of which was used to settle with land creditors, down from £664.0 million in 2022.

However, as of December 31. the company's cash had halved to £420.0 million from £862.0 million. The company said that "disciplined management" of cash and costs remains a priority going into 2024.

However, Persimmon said that it enters 2024 with an improved forward sales position, up to £1.06 billion from £1.04 billion at the end of 2022. Private forward sales are up 11%, alongside a 4% value increase to £499.0 million.

While the company predicts that market conditions will remain "highly uncertain" ahead of the 2024 general election, Persimmon said that "longer term demand for new homes remains favourable".

Easing mortgage rates and moderation of build cost inflation will benefit both Persimmon's completion rates and house sales, the company said.

As a below-market-price housebuilder, the company said: "Persimmon is well-positioned for sustainable growth when conditions improve".

Shares in Persimmon were up 3.6% at 1,441.50 pence each in London on Wednesday morning.