Persimmon: Housing construction giant faces contract loss in the face of government concerns over Buy-A-Friend program

The homebuilder Persimmon's right to sell help with the purchase of homes is being examined by the government's concerns about the company's behavior.

An extension of the contracts for this program from April 2021 is soon to be considered by Housing Secretary James Brokenshire.

"James is more and more concerned about Persimmon's behavior over the past 12 months," a source close to the minister told AP.

"The lease, the quality of construction, the direction they are showing, apparently, are not held to account to their clients, are all points raised privately by the Secretary of State."

Launched in 2013, Help to Buy allows buyers to deposit a 5% down payment on a newly built home and get a loan of public funds up to 20%, or 40% in London, from the price of 40%. ;purchase.

"Since the contracts for the 2021 extension to Help to Buy are being revised, which is overall a great way to help hundreds of thousands of people become homeowners, it would be surprising that Persimmon's approach is not a topic of discussion, "the source said.

It is understood that any new government funding program will not support the unjustified use of the lease for new homes, which includes the new purchase badistance program from April 2021 to March 2023.

Persimmon has recently been criticized by politicians and shareholders for a salary of £ 75 million earmarked for its former boss, Jeff Fairburn, who left the company late last year.

In January, the homebuilder raised its profit forecast for the year, thanks to increased home production and the strength of the UK housing market.

For 2018, the group's revenues increased by 4% to 3.74 billion pounds sterling, new home revenues rose 4% to 3.55 billion pounds sterling.

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