New homes sales to “remain stable” in 2012, says Persimmon chief

The man in charge of one of the leading UK's leading housebuilders believes that new homes sales volumes and prices during 2012 will generally remain similar to those recorded in 2011 as the market should "remain stable".

Speaking about his forecast for the 2012 housing market, Mike Farley, group chief executive of Persimmon Homes, said that he expects to see "steady progress for 2012" thanks largely to a various Government initiatives to stimulate the market.

He said: "All forecasts are of course dependent on continued economic stability and in this respect our industry is no different to any other.

"The Government has recently announced a series of initiatives to stimulate the housing market. We're fully supportive of the 95% mortgage indemnity scheme, which we expect to see implemented by the spring of next year. This scheme will make a significant impact later in the year, as it will improve mortgage lending for first time buyers.

"We will continue to work with the Government to support the new draft National Policy Planning Framework, which could substantially improve the supply of residential planning consents to address the significant shortfall in new homes construction across the UK."