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First-time Buyers

3,000 Persimmon homes bought using H2B 1

paulajohn
Written By:
paulajohn
Posted:
Updated:
06/11/2013

Property builder Persimmon has seen its sales rocket thanks largely to the government

Persimmon’s results revealed that it completed 45% more sales per week in July this year compared to July 2012, with the uplift helped by the first part of the government’s Help to Buy scheme.

In total 3,000 Persimmon homes have been bought this year by borrrowers using the government’s Help to Buy 1 equity loan scheme.

The builder hopes that the second part of the scheme could give a further boost to sales in the future.

Persimmon said: “With only a limited number of lenders involved in this second phase so far, the impact to date has been muted due to the higher level of interest rates being charged.”

However, it expects the interest rates offered on the equity loan scheme to come down in the future and for this to be the most widely used part of the scheme:

“We believe mortgages associated with the Help to Buy equity loan scheme will remain the preferred choice for the majority of customers of the housebuilding industry.”

Persimmon has sold all its stock for 2013 and has £650m forward sales reserved beyond the end of the year. Reservations are 41% higher than the same time last year.

In August, Persimmon finance director Mike Killoran said the second part of Help to Buy would boost house building.


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