Persimmon pays price for rebuilding reputation as sales decrease

A bid by Persimmon’s new boss to improve the controversial housebuilder’s battered reputation following a string of scandals has dented sales, it emerged on Thursday.

The FTSE 100 firm, which has faced complaints about poor construction and its former boss’s vast pay packet, sold 7584 homes in the first half of the year, down 6% on 2018.

Revenues dipped slightly to £1.75 billion, and the shares lost 16p to 1971.23p.

Chief executive Dave Jenkinson blamed the drop on Persimmon’s new strategy to sell properties at some sites at a later stage in the construction process, rather than off-plan.

Jenkinson, who took the helm in February, told the Standard the move means the completion dates given to customers can be more reliable. “It also gives us more time to ensure the quality is right at the move-in date.”

The boss has been trying to boost the firm’s reputation following a turbulent period that saw predecessor Jeff Fairburn leave after a backlash over his £75 million bonus and board resignations. The company has also come under fire for the quality of its workmanship.

From this month, Persimmon homebuyers’ solicitors will keep 6% of the build cost of every new home — equivalent to an average of £3600 per property — until any faults identified are fixed, under a new initiative by Jenkinson.

He said he has recently seen “a real step up in improvement in terms of customer satisfaction”.

Persimmon has recently been accused of censorship after it seized control of a Facebook page set up by disgruntled buyers to complain about the company.

Jenkinson today defended the decision, claiming many comments were not from Persimmon customers. He said his staff can now have direct access to genuine customers to address real complaints.

Margins for the first half of the year will be around 2018 levels at 30.8%, the firm added.