York firm puts hold on new housing programmes

10:42am Thursday 24th April 2008

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HOUSE builder Persimmon, the York-based Plc has put on hold any new projects until the mortgage market improves.

The postponement was being announced today at Persimmon's annual meeting at York Racecourse, where shsareholders are being told that the group's revenues were running 24 per cent lower this year after a deterioration in the market 9over the past three weeks.

Revenues for the year to date are about £1.37 billion compared with the £1.8 billion seen at this stage of 2007.

A statement issued by Persimmon today welcomes Government actions to increase liquidity in the banking system to kick-start the mortgage market, but calls for extra action to help first time buyers by increasing the threshold for stamp duty and further reducing interest rates.

"Because of the uncertainties of the global eco9nomy and the UK lending environment, it is difficult to predict when the market will improve.

"We are therefore focusing on management of cash flows within the business to ensure that our balance sheet strength is maintained.

"Close control of investments in work in progress, land, build costs and overheads are a priority for our experienced management teams.

"We are currently operating off five per cent more sites than a year ago. Against the current backdrop we have postponed the start of scheduled new sites until the mortgage market improves."