The monthly cost of mortgage payments for some first-time buyers has approximately doubled over the past year, housebuilder Persimmon said as it warned over a slump in housing sales in recent months. The British builder revealed that its sales took a hit over the last three months of the year because of weaker customer demand.
Concerns over the economy, mortgage rates and the cost of living "weighed heavily on consumer confidence", Persimmon said in its latest trading update to investors. The builder's private net sales dropped to 0.3 per outlet per week in the fourth quarter of the year, compared to 0.77 in the same period last year, indicating that it struggled to sell new properties following the former Chancellor's mini budget at the end of September.
Overall in 2022, private net sales were 0.69 per week for the year, down from a rate of 0.83 in 2021. It has been particularly tough for first time buyers to get on the housing ladder, having seen the Government's Help to Buy scheme end last year and borrowing costs soar for new home loans.
