Persimmon - one of our largest housebuilders - has today released its half year figures to the end of June 2016.
All the key numbers are looking good - revenue up 12% to £1.49bn, completions up by 6% to 7,238, profits up by 29% to £352.3m - indicating the robust health of the house building industry. Years of undersupply of new homes combined with the current climate of cheap mortgages and government support for house buying means it's not that difficult to make money out of building houses. The only real problem house builders have at the moment is finding the skilled labour to build faster.
It remains to be seen what the markets will make of Persimmon's latest results - most house builders shares took a big hit post the EU referendum and have yet to recover all the ground lost in the aftermath.
The perception seems to have been that consumers would for some reason stop buying houses post-referendum, although the reality appears to be quite different. At Blayze Group our Construction Team is busier than ever and the house builders that we are talking with on a daily basis tell us that both sales and enquiries are strong.
As Jeff Fairburn, Persimmon Group Chief Executive, says: "While the result of the EU Referendum has created increased economic uncertainty, customer interest since then has been robust with visitor numbers to our sites around 20% ahead year on year. Our private sale reservation rate since 1 July is currently 17% ahead of the same period last year. The Group is now trading through the traditionally slower summer weeks but customer demand remains encouraging and we anticipate a good autumn sales season."
Other sectors would love to be in the position of the typical volume house builder - low gearing, healthy land bank, strong demand and good profits. These are conditions for investment and growth, not time to hunker down and pull up the drawbridge. If the markets can't see the value in a stable, growing industry that makes a great contribution to the UK economy, who cares?
It's time for house builders to ignore the markets and speculators and get on with what they do best - building more quality homes to replenish the housing stock that is so badly needed.
About Blayze Group
Blayze Group helps transform organisations and gain competitive advantage by sourcing, securing and developing the people that property and construction businesses need to grow and prosper.
Established in 2002, Blayze Group is an award-winning recruitment consultancy in the property and construction sector, providing tailored services to clients through specialist teams, each dedicated to and experienced in their particular discipline.
Today Blayze Group is a leading recruitment partner working with organisations in Architecture, Construction, Consulting, Energy, Engineering, Financial Services and Sales and Marketing sectors. It counts most of the leading residential and commercial developers, construction firms and property consultancies among its client base.
Blayze Group takes the time to understand not just its clients’ business and their strategic objectives, but also their organisational structures and working culture. Blayze Group’s unrivalled sector knowledge and unique consultative approach means that it can deliver the highest quality talent - quickly and cost effectively.
In addition to sourcing talent, Blayze Group provides bespoke Talent Management and Training Programmes to help ensure skills development and retention of your most valued employees. Our programmes are scientifically designed to increase productivity, reinforce staff loyalty and help develop your employees to their full potential.
For more details about Blayze Group's Talent Management and Training Programmes, call Claire Pattenden on 020 7337 7500.