Trading Statement

Persimmon PLC
21 December 2004



                      TRADING UPDATE - 21st December 2004

Persimmon plc issues the following trading update ahead of its preliminary
results to 31st December 2004, which will be announced on Monday, 28th February
2005.

We expect to confirm another year of record profits, in line with current market
expectations, when we report our results for the year to 31st December 2004. As
stated at the interim results on 24th August 2004, we expect to pay a full year
dividend at least 25 per cent higher than that of the prior year.

Volumes for the year have increased to c. 12,400 legal completions (2003
-12,163) at an average selling price of c. £172,000 (2003 - £154,810), an
increase of c. 11%. Gearing has been reduced further to c. 16%, whilst we have
maintained a strong land bank of c. 59,000 plots (31st December 2003: 57,222
plots).

When we announced our interim results in August, we commented that the market
was more subdued. It became apparent at the beginning of May of this year that
the market was easing following a period of high sales volumes and continued
price growth.

At that time we adjusted our hurdle rates for the purchase of new land as well
as reviewing build programmes and commitments, in line with our expectations
based upon these changing conditions. Since then there has been constant media
speculation concerning house prices. During this period, new house prices have
remained stable, whilst there has been an adjustment in second hand house
prices. Following the higher levels of house price growth reported by the
Halifax and Nationwide when compared to new housing data over the last few
years, this is not surprising and is welcomed.

Our carried forward sales revenues into next year are at the same level as last
year, when we reported a very strong order book of £550 million.

Recently, build cost pressures in respect of labour costs have eased
considerably. Whilst there are some material cost pressures, we expect to keep
the overall increase in the cost of materials at a similar level to recent
years. Overall therefore we expect to keep total build cost increases at a low
level. In addition, the depth and quality of our landbank together with our
scale benefits puts us in a strong position to continue to focus on
profitability and returns.

Persimmon is currently operating off c. 12% more outlets than at the same time
last year and visitor levels remain good. Persimmon remains very well placed in
this current trading environment with our broad geographical spread enabling us
to offer new homes across a wide price range whilst having limited exposure to
the buy-to-let and large inner city apartment markets.

We believe that the continued under supply of new housing, in addition to the
effect of the deferment of purchasers decisions to buy a new home, will support
an upturn in volumes of house sales from current levels. The fundamentals for
the housing market remain good, with historically low interest rates, good
employment prospects and a robust economy.

                                     -ENDS-

For further information, please contact:

Persimmon plc                              Finsbury Group

John White, Group Chief Executive          Edward Orlebar/Kirsty Flockhart
Mike Killoran, Group Finance Director      Tel: [phone]
Tel: [phone]

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