Build rates are currently 30% lower than last year as the market continues to struggle.

Persimmon said: “We continue to operate from a lean fixed cost base and pursue a highly disciplined approach to Work In Progress management. As a consequence, build rates in the third quarter were c.30% lower year-on-year reflecting the slower sales environment.

“Disciplined management of costs remains a key focus for the Group and in addition to careful spend controls, the hiring freeze we have in place means that headcount is likely to reduce by c.700 during 2023.”

Persimmon is continuing to haggle with subcontractors over price reductions.

It said: “We have taken a proactive approach with suppliers and subcontractors to secure price reductions on both materials and labour over the past few months.

“In line with prior commentary, build cost inflation has been more stubborn than expected at the start of the year and we anticipate the annualised impact of build cost inflation through the P&L for 2023 will be c.8-9%. However, build costs have moderated since the half year which will benefit completions in 2024.”

Dean Finch, Group Chief Executive, added: “Trading in the period was in line with expectations and pricing was broadly stable. We are on track to deliver around 9,500 quality new homes in 2023 with operating profit in line with expectations and at an operating margin similar to the first half.

“While the near term is likely to remain challenging and we remain disciplined on costs, we continue to position the business for growth when the market recovers, as demonstrated by our further progress on planning in the period. The Group’s national network of outlets providing a high-quality product at a range of attractive prices is a crucial strength in this market.”