Persimmon Cancellation Rate Up 35 Percent As Homebuyers Struggle To Get Mortgages

Cancellation rates at homebuilder Persimmon have risen 35 per cent as the mortgage crisis continues to scare off potential buyers.

In its Interim Management Statement yesterday, Persimmon confirmed that the number of people who have put down deposits of up to £700 on new homes and pulled out has now hit 35 per cent – around 20 per cent higher than the normal average.

“Since we reported our Half Year results on 21 August 2008 we have encountered deteriorating trading conditions,” said the statement.

“The uncertainty created in the housing market by the increasingly turbulent and uncertain outlook in financial markets has had a negative impact on all our regions across the UK.”

According to Moneysupermarket.com, the number of mortgage products available to first time buyers and people looking to remortgage has fallen a dramatic 86 per cent since April, and Persimmon says that this drop is one of the main contributors to the rise in cancellations.

“The availability of mortgages has continued to be very restricted and cancellation rates have increased to 35% over recent weeks due to these market uncertainties,” said Persimmon.

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