Trading Statement

Persimmon PLC
09 January 2008


                   TRADING UPDATE - WEDNESDAY 9 JANUARY 2008


Persimmon plc announces the following trading update ahead of its Preliminary
Results to 31 December 2007, which will be announced on Tuesday 26 February
2008.


Despite experiencing more challenging trading conditions in the second half of
2007, Persimmon expects to announce another strong set of results for the year.
We have improved operating margins for the year through a combination of tight
cost control, the delivery of further synergy savings from the Westbury
acquisition and the benefits emerging from the successful development of our
strategic land portfolio. This will deliver an increase in profit before tax for
2007 in line with the mid range of analyst expectations.


The Board confirms that, in line with its previous statement, it recommends
paying a minimum 10% increase in the dividend for the year ended 31 December
2007 subject to shareholder approval at the Annual General Meeting in April
2008.


Since we reported our Interim Results on 21 August 2007, the market has been
more difficult. Volumes have been impacted as lower consumer confidence and the
tightening of credit markets reduced activity in the important Autumn period. As
a result we have achieved 15,905 legal completions during 2007, a reduction of
5% against 2006 (16,701).

However, sales prices have remained resilient during this period, although as
anticipated at the time of our Interim Results, we have experienced an increase
in incentives and marketing costs.


Underlying price growth of our homes for sale was c. 3% during the year. The
average selling price of our homes increased to £189,558 (2006: £188,129). This
increase in average selling price has been achieved whilst at the same time we
have increased the proportion of affordable homes developed.


During the period we were also increasingly selective with our land purchases
and continued to exercise tight control over our work in progress investment to
ensure that cash management remained robust. Our total landbank remains at a
similar level to last year and currently we own or control c. 79,000 (2006:
80,085) plots for future development.


Our balance sheet remains strong and cash flows are healthy, with gearing at the
year end of c. 31% (2006: 33%).


Forward sales into 2008 were £603 million (December 2006: £701 million). This
largely reflects the lower level of sales achieved over the last 3 months of
2007 due to market uncertainties. Now that interest rates have changed direction
and with the Spring selling period ahead of us we expect to experience an
increase in the level of activity over that achieved in the recent months. We
are operating from c. 7% more outlets than in January 2007 which should further
support our sales activity for the Spring season.


It is too early in the New Year to predict exactly how the market will develop
over the next few months. However, we are confident that our focus on cash
management through these more challenging times will ensure that when the market
improves we are well set to take advantage of it. We believe that the underlying
fundamentals for our industry remain intact and supportive.


Details of our Results for 2007 and a future market update will be announced on
Tuesday 26 February 2008.


For further information, please contact:
Mike Farley, Group Chief Executive
Mike Killoran, Group Finance Director

Persimmon plc
On 9th January 2008: [phone]
After this date: Tel: [phone]

M: Communications
Edward Orlebar / Charlotte McMullen
Tel: [phone] / 1549







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