Persimmon to cut down on Welsh developments

27th Sep 2013 14:48

Persimmon, the FTSE 100 listed house builder, will no longer construct as many properties in the south Wales valleys as they fail to generate sufficient profit. The group, which has built around 1,000 new homes in Wales each year, said that developments north of Pontypridd sold for too low a cost and that government red tape added to the overall building costs. Regional Managing Director Glyn Mabey wrote a letter to the Welsh government revealing his disappointment and concern at the country's approach to the issue."As a Welshman this situation is deeply disappointing for me and as a businessman in Wales hugely concerning," it read."I have the overview benefit of being responsible for businesses in both Wales and England and I can see with alarming clarity the difference in activity either side of the bridge due to the policy support, or lack of it, as appropriate."There is a major risk - actually it is already happening - of a flight of capital that would have gone into Wales going elsewhere."And that is criminal in a country where our relative economic standing is deteriorating, deprivation expanding and our housing stock is the oldest in the whole of Europe and one of the worst in terms of physical condition."The government responded by saying the letter had been written prior to changes made to housing regulations back in July. It is also drawing up a new bill with the intention of simplifying the process in an effort to boost the economy.However, for Mabey, the recent relaxtion of the rules failed to properly address the additional costs associated with house building in Wales. NR