UK's Persimmon upbeat on 2024 housebuilding targets amid sector rebound hopes

Britain's Persimmon expects to build at top end of its annual housebuilding target in 2024 as easing mortg rates and a UK rate cut spur recovery hopes in sector, it said on Thursday after posting a 3 per cent drop in interim pre-tax profit.

positive tone of housebuilder chimes with policy set out by Britain's new Labour government, which wants to tackle country's housing crisis by easing planning restrictions and boosting land supply.

UK rate cut in more than four years have fostered optimism in country's housebuilding sector where demand has remained subdued for more than a year.

Many of top UK mortg lenders lowered rates in February and July in anticipation of long-awaited rate cut decision, although delay in monetary policy loosening averted continual reduction in home loan rates through year.

"Consumer confidence continues to improve leing to a strong pick-up in enquiries and visitors, which will be furr supported by recent cut to Bank of England base rate," FTSE 100 company said in a statement on Thursday.

Shares in Persimmon were up 1.7 per cent by 0820 GMT on Thursday and stock was among top percent gainers on blue-chip index.

Investec analysts said in a te that Persimmon's comments on recent tring and outlook were positive in tone, with a good sales rate over last few weeks auguring well for rest of year.

Persimmon, which builds homes ranging from studio apartments to five-bedroom houses, said weekly net private sales rate per outlet since start of second-half stood at 0.69, up 68 per cent on last year.

rth England-based company said it has got detailed planning on about 6,000 plots so far in year, with around 1,000 of se achieved in July following new government taking office.

Persimmon said it was on track to build about 10,500 homes for full year, even as its pre-tax profit dropped 3 per cent to 146.3 million pounds ($186 million) for six-month period ended June 30.

Last week, Persimmon peer Taylor Wimpey also forecast its annual housebuilding target towards upper end of its guidance range, underscoring market expectations of a demand recovery, a day before Bank of England cut rates by 25 basis points.