Persimmon's profits slump

LEADING housebuilder Persimmon added to the sector's recent woes today by announcing a dramatic 64 per cent drop in profits.

The firm – which has cut 2000 jobs – revealed a grim set of six-month results, showing a fall in pre-tax profits to £100.9 million.

Homes sold by the firm fell by almost a third to 5501 and average selling prices dropped five per cent to £181,485. The group also wrote off £40 million due to falling land values.

Chief executive Mike Farley said the proportion of its homes bought by first-time buyers had fallen from around 17 per cent to ten per cent in the first half of the year. First-time buyers are the people who have been hit hard. We would say whatever the Government can do, do it for first-time buyers."