But housebuilder warns on rising costs in 2027
Persimmon said it is on track to increase delivery to 12,500 homes this year in line with previous expectations.
The housebuilding giant, in an unaudited update today, said it is well-positioned to boost its delivery from the 11,905 homes delivered in 2025.
The firm said its private forward sales position has increased 3%, from £2.09bn to £2.15bn and it expects to post underlying profit before tax for the full year of around £455m to £460m.
Persimmon said it expects to continue growing volumes next year due to a strengthening land pipeline and expansion of outlets.
However, it also warned that inflation is expected to increase annual costs by £30m to £40m this year and said this, together with higher borrowing costs, is expected to limit short-term profit.
It said: “We expect market conditions to remain challenging, reflecting continued affordability constraints, higher borrowing costs and uncertainty over build costs arising from the conflict in the Middle East.”
“We have already identified actions that are expected to substantially mitigate these headwinds by 2028 and continue to invest in the capabilities that support long-term value creation.”
Persimmon as of 1 November had 11,240 homes forward sold, down on 11,439 in the same period last year. Its private homes rose by 3%, partially offsetting a 4% drop in partner-funded homes.
Dean Finch, group chief executive at Persimmon, said the group welcomes the government’s recognition of affordability challenges for homebuyers through the announcement of the Your First Home equity loan scheme.
No comments yet