Housebuilder Persimmon has indicated its market continued to be challenging in the first part of the year.
The York-based developer issued an update to investors in which it said first quarter performance had seen "some signs of encouragement" with more visitors to its sites and improving sales figures. Having started the year with a lower order book, the firm said that if sales continued on a similar path it would see full year completions toward the top end of its expectations - between 8,000 to 9,000 homes, still well below recent years.
The update comes as Persimmon announces its £25m investment into offsite housebuilder TopHat, which will give it access to the Derby-based firm's brick façade and modular products. It is hoped TopHat's offer will help Persimmon to support future volume growth.
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Insurance firm Aviva has joined Persimmon with a £20m investment as part of a £70m fundraising round that will underpin the setting up of TopHat's Corby factory that promises to generate 1,000 jobs.
Dean Finch, Persimmon group chief executive, said: "Looking beyond 2023, Persimmon has a strong platform from which to grow outlets and volumes as the market recovers. We have an excellent pipeline of new land opportunities to support growth in 2024, subject to planning, and we are encouraged by the early signs of improved customer confidence.
"The longer-term demand fundamentals for new homes remain robust and Persimmon has made significant progress over the past two years in building a stronger, more sustainable business for the future."
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