York housebuilder Persimmon expects to complete 10,500 homes this year, compared to 9,922 in 2023.

In a trading update for the quarter from July 1, the company says it has delivered 1, 416 homes, compared with 1,439 in the same period last year.

Sales were higher, at 0.7 private sales per outlet per week, compared with 0.51 a week in the same period in 2023.

The housebuilder had a current forward sales position of £2.03billion, compared with £1.73 billion a year ago.

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Customer interest remains good across all regions, and its marketing campaigns continue to generate healthy online traffic and visitors to its sites, said the update.

 Affordability and value remain important to customers, it continued. Affordability constraints, particularly for first-time buyers, have been helped by the initial reductions in interest rates and a greater availability of over 90% loan-to-value mortgage products on the market than a year ago. 

The update reported signs of cost inflation beginning to emerge in price negotiations for 2025. The company is working with its supply chain to manage costs, which will also be affected by new building regulations and high employer national insurance rates announced in the recent budget.

It continued: “The firm’s update states: “We are seeking to mitigate the impact of these cost increases through robust commercial controls and other management actions.”

However: “Early announcements from the Government around planning reforms have been encouraging.

“We look forward to the outcome from the consultation on the National Planning Policy Framework later this year.”

Persimmon also has “an excellent pipeline of new sites” and was “optimistic” about its growth prospects.

Dean Finch, group chief executive, said: “Positive momentum in the business continued over the summer months and we remain on track to deliver growth in completions to around 10,500 for the full year.

“Visitor numbers and enquiries remain strong and sales rates continue to be well ahead of the prior year.

“Our forward order book is up 17% on the prior year with the private average selling price robust.

“We continue to position the business for success, maintaining our focus on quality and customer service, and converting our land holdings