Persimmon improves the quality of its homes after years of complaints over shoddy workmanship – but it comes at a cost
Attempts by Persimmon to improve the quality of its homes have eaten into sales.
The housebuilder, which makes annual profits of £1billion-plus but has faced persistent criticism over build quality, said sales fell by 6 per cent in the first half of 2019.
The company said it was expecting a similar drop in the second half.
Quality control: Persimmon, which makes annual profits of £1bn-plus said sales fell by 6 per cent in the first half of 2019. The firm said it was expecting a similar drop in the second half
The update came as rival Bovis Homes bought Galliford Try’s housing arm for £1.1billion.
The deal will more than double the size of Bovis’ housing business, making it the UK’s fifth-largest builder at a stroke.
Persimmon’s sales fall came as the company started putting up homes for sale at a later stage of the construction process so that customers who view them get a better idea of what the finished product will look like.
In the first half of this year it sold 7,584, down from 8,072 during the same period a year ago.
Persimmon said it expects another percentage drop in the second half, although it is likely to sell more numerically as the market is more active in autumn and winter.
The Mail has previously highlighted the poor quality of Persimmon homes.
Shares in the builder rose 3.8 per cent, or 86p, to 2362p yesterday.