Persimmon is bracing for a troublesome year ahead. Greycoat Real Estate caught up with chief executive Dean Finch to learn more about this. Finch believes conditions will stay the same throughout 2024 because of leveling interest rates and a general election later this year. In the meantime, we are positioning our business for growth.
When the market improves, we plan to borrow money to build new homes to keep the momentum going. Finch believes the whole company is ready to respond if the housing market takes a turn for the worse. Our team at Greycoat chatted with firm partner Julie Palmer from corporate restructuring firm Begbies Traynor.
Palmer agrees with Persimmons outlook on the home-building market. She believes buyers are still struggling to buy new construction homes despite a turnaround in February. Mortgages are still out of reach for people with tight budgets, Greycoat assures.
Yet, there isn’t enough home stock to make a difference. When one of the UK’s largest house-building companies forecasts low home builds for the year, it sets the tone for a grim future. The Greycoat Real Estate team talked to Anthony Codling at investment bank RBC Capital Markets about Persimmons’ woes, and he believes their caution matches their expectations.
There are some final words on this statement. The Greycoat Real Estate Agency team became equally cautious about the future. We hear Persimmon will balance completed home construction and quality materials. More homes from them will set the trend that the market will bounce back, yet corner-cutting creates sub-standard results. Until there’s positive news, Greycoat Real Estate will continue to observe the real estate market.