The interest rates don’t seem to have really affected anything mortgage cost wise yet, possibly short/medium term mortgages (2 and 3 years) as I don’t really monitor those rates
But you can still get 5 year fixed deals at around 3% to 3.2%
My 5 year fix from late 2017 was 2.9%
With the lending criteria being a stress test at pretty high rates (6%+ is it?), at the moment it probably still more comes down to an individuals/couples affordability, with the higher inflation taken into account.
Got mine 10 days ago from NatWest at 2.72% 5 yr fixed.
Mind you that’s up from 1.4% I got in August last year.
Rising inflation & rates is affect consumer confidence. People just aren’t willing to make ‘want’ purchase and so the buyers are mostly the ‘need’ buyer. They tend to make up the major of movers, from what I see.
Good morning all.
I have taken another big hit but at least it’s a good opportunity to average down.
Is the company still doing well financially? Is this drop just an overreaction?
I hope they are ok Persimmon are my best dividend payers by far
Yeah I should probably clarify that 3% to 3.2% was 10% deposit, but in general it’s not been a significant increase or change yet.
But yeah agree there will be a demand/consumer confidence hit, no doubt about that, I was more angling at the fact I don’t think the interest rate increases are a factor quite yet.
In some sense it’s a general market drop, but more specific factors to consider like demand for homes potentially dropping, inflation/mortgage approvals etc
The last trading update (27th April) I would summarise as generally ok, worth reading yourself to have a better understanding -
Their next update will be 7th July
Just read the trading update. All things considered the figures look ok to me but I guess we won’t have seen the effect of interest rate hikes yet.
Just a thought I have never seen any info on company AGMs. Are we allowed to attend these as shareholders through FT?
, Interesting question about AGMs, i would like to know the answer. I think it’s a no because we don’t buy shares full on/complete.
FT buy them for us and there is a lag between what they get and what they pass on. I think!
I’m not using correct terminology here but bear with the gist of it.
I’m not sure if FT even get full on shares with voting rights, I don’t think voting rights are automatic nowadays with a share but i may be wrong.
I seem to remember it being changed to stop protesters buying a few shares and then going and disrupting AGMs etc about political points, good plan don’t know why anyone might have got upset about it.
It probably is written somewhere in all the gumf but to save a mass search howz about a quick answer from FT
BTW NeilB
I haven’t looked over any housing built by Persimon under any of its brands and wouldn’t be qualified to comment if i did, unless it was really blatant, leaking pipes, sagging stairs, sparking switches etc.
If they were that bad i think they would go out of business by natural selection.
I generally take criticism of companies by competing companies with a very large pinch of salt.
Word on the street though is that it’s Barratts that have the reputation for shoddy building, at least in Essex, East Anglia. M
I’ve never had to live in one of their a houses so I won’t comment.
Especially with the market and short sellers so sensitive to criticism.
At the end of the day it probably depends on how well any company treats its workers compared to the quality of the end product.
Freetrade buy shares on your behalf and list you as the beneficial owner. In the UK the shares bought are held by Freetrade Nominees Limited. Shares are held under the nominees name, with you listed by Freetrade as the beneficial owner of the shares.
When it comes to voting, the reason you often find you cant directly vote is more down to the limitations of the broker its self, and not that the shares don’t have any voting right.
Some brokers do facilitate voting. Freetrade (along with many others), currently don’t as far as im aware.
Ways around this are to hold shares directly with the company who manages the shares for the business. So for example for Persimmons this would be computer share. you also have the ability to hold shares directly in your name, however for paper share certificates this is being phased out, and for direct holding with CREST I think this is actually quite expensive, and requires a more specialist broker. (but this is largely unnecessary). Or use a broker who supports voting.
To be able to vote on shares you own held by a nominee, you can be appointed as a proxy for the nominee with the ability to vote and attend meetings.
HL for example support your ability to send them voting intentions for them for forward on or make you a proxy to attend meetings and vote.
Freetrade currently largely do not support general voting, but can support some types of corporate action requiring a vote (see here How does Freetrade handle corporate actions? | Support)
the TL:DR being, most shares do have voting rights, these have not disappeared. but many brokers just don’t fully support the management and execution of voting rights for all their beneficial owners of shares right now.
(This is just my current understanding, so it may not include all details. I’m sure someone can add to it if I’ve missed anything or got anything wrong)
If you want to buy a new house in your town you often will have a limited range of choices, maybe 1 or 2 developers. The majority of people stay within 5 miles of their current home narrow this down further with budget, size & completion time and you’re left with limited options. Therefore developers with poor standards and designs based on build cost/efficiency to build styles can continue to survive.
You’re right to try and filter for biases in single opinions and I would hope that nobody ever makes an investment decision based on my opinion alone. However, I’m no flag-waving loyalist having worried for 6 different developers/developer regions in 12 years I am someone who has repeatedly refused to interview for Persimmon despite the opportunity to do so. They have a track record of poor staff welfare and the unwritten rule is you go there to get promoted and then leave to go back to a better builder.
While no builders are perfect, Barratts 100% in this camp, Persimmon are the only ones who HAD to allow customers to retain money upon completion and only release these funds once their snagging was complete. This speaks volumes for their attitude.
Good morning all.
If I can be honest my biggest hope at this stage is that they maintain the dividend for 2022/23 (and it’s sustainable of course).
Fingers crossed for decent results on the 17th.
I drive for Breedons and tbh. All new builds are slung up as fast as possible, it’s not the building company, but the site foreman that decides whether the houses are good or bad. I deal with several site from the same company, and would (if I had to) buy a new build on one of their site but none of the others purely because I know the foreman on that site is stringent and doesn’t allow shoddy work. The others, wouldn’t touch with a barge pole.
How low do we think this will go?
I’ve been mulling over opening a position so knowing me it will crash and burn to zero if I do 
Many building materials are energy intensive
Rising interest rates affect borrowing
Rising inflation affects consumer confidence
If House prices fall then the land they’ve brought recently could be overpriced
Persimmon has no brand moat. They’re a big company and their houses are ‘cheap’
The last point may not necessarily be a negative with the current economic outlook!
At this stage I have lost so much I am in for the long haul now.
I guess I’ll keep averaging down to lower my sp and hope they maintain some kind of dividend.
This is the sunk cost fallacy, and such behavior may be described as “throwing good money after bad”,[20][15] while refusing to succumb to what may be described as “cutting one’s losses”.
Yes, unfortunately they are my biggest holding. I had been planning to offload some after the last dividend but their price went too low and now keeps sinking. I’m probably not going to put more in, but I’ll definitely hold and hope for future dividends and an eventual resurgence in the share price.
Personally I think a dividend will be maintained but clearly it will be below the current levels. Not only due to the economic outlook but also the CFO did state in the recent results that a review of the capital structure is going to take place, in my mind this will include a revised dividend policy. A positive is that there is plenty of room for manoeuvre on the dividend payout whilst still attracting a good yield.
Obviously everybodys investing timeframe is different but again, my personal opinion is that if time is on the investors side the volume housebuilders will come out the other side of these headwinds and continue to deliver value for shareholders.