Persimmon is predicting another tough year ahead for the housing market as its latest results showed pre-tax profits fell by more than 50%.

Group chief  executive Dean Finch said: “With interest rates expected to remain at current levels and a general election on the horizon, market conditions are expected to remain subdued throughout 2024.

“However, we are well placed to manage this and are positioning the business for sustainable future growth over the medium-term.”

Results for the year to December 31 2023 showed pre-tax profits fell to £351.8m from £730.7m last time on turnover down to £2.77bn from £3.82bn.

Persimmon said its “disciplined approach” to cost control during the year included a hiring freeze and shutting the South Yorkshire office which resulted in a 13% drop in staff numbers and a £23m annual saving.

Finch added: “We actively renegotiated subcontractor pricing in the year, resulting in a softening of build cost inflation in the second half, which will benefit completions from 2024.”

Persimmon said that it would begin to borrow money to increase build rates when the market starts to pick up.

It said: “As we look to expand our outlet base and invest in work in progress in anticipation of a housing market upturn, we expect to utilise our new £700m Revolving Credit Facility during 2024.

“Consequently, we anticipate transitioning from an average net cash to an average net debt position through 2024, resulting in an estimated net finance charge of approximately £15m-£20m for the 2024 financial year. We currently anticipate our net cash to be between zero and £200m as of 31 December 2024.”

Finch said: “We are well placed to manage the ongoing uncertainty and we have good visibility over our land pipeline which, over the medium-term, will support a return to growth in outlets and volumes, alongside improved margins and robust cash generation, paving the way for sustainable shareholder returns.”