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Major housebuilder Persimmon freezes all new projects amid credit crunch

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One of the UK’s biggest housebuilders, Persimmon, has put all new projects on hold due to the tightening of the mortgage market.

The York-based company, which reported a 24 per cent drop in sales revenue compared to this time last year, said the global credit crisis had ‘continued to undermine consumer confidence’.

In a statement released today (24 April), the firm said: ‘Against the current backdrop we have postponed the commencement of scheduled new sites until the mortgage market improves.’

It added: ‘Because of the uncertainties of the global economy and the UK lending environment, it is difficult to predict when the market will improve.

‘We are therefore focusing on management of cash flows within the business to ensure that our balance sheet strength is maintained.’

Persimmon revealed that sales had plummeted from £1.8 billion to £1.37 billion over the last year.

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