Housebuilder to review city plots as profits slump

CONSTRUCTION FIRM TO SLOW BUILDING AS PROFITS DOWN 65%

- WILLIAM TELFORD

THE company building two of Plymouth’s key housing developments is to review every plot in the city after seeing profits fall by 65%.

Construction firm Persimmon will review its developments at  Palmerston Heights, in Derriford, and Saltram Meadow, in Plymstock, after seeing its underlying operating profit slump to £152.2m from 2022’s £440.7m in the first half of 2023.

Persimmon says it will now slow down the rate at which it builds houses and implement a cost-cutting strategy after being hit with “significant market challenges and volatility”, including mortgage rate increases and build cost inflation of about 5%. 

However, the company says its Plymouth plans remain unaffected, including jobs, planning applications and housebuilding schemes.