Housebuilder Persimmon has raised its expectations for the coming year, projecting that it will deliver sales at the “upper end” of its targets despite a difficult property market. The company forecasts approximately 12,500 home completions in 2026, stating that profits are on track with current guidance. This update arrives even as industry leaders acknowledge that ongoing “affordability constraints and build cost pressures” are continuing to weigh on the sector.
For the six months ending June 30, Persimmon reported that new home completions had risen 13 per cent to 5,189. Group revenues were 15 per cent higher, reaching £1.73 billion. Pre-tax profits at the York-based firm also climbed 15 per cent to £168 million. The builder’s operations stretch across the UK, with sites located from Perth in Scotland to Devon in the south.
While sales have remained strong in the first half of the year, the company noted a slight softening in open market sales during recent weeks. Net private sales were up six per cent in the five weeks to the end of June, but the wider housing environment has proven challenging. Build costs and affordability issues persist for many buyers, creating a difficult environment for the property industry.
Persimmon’s office estate includes sites in Leicester, Newcastle, Nottingham, Swansea and Plymouth.
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Managing costs and investment
Boss Dean Finch described the recent trading performance as a “strong” showing for the business over the half-year. The company’s portfolio includes specific sites such as Harebell Meadows in Stockton-on-Tees, Tame Bridge View in Wednesbury near Walsall, and Farleigh Fields in Backwell near Bristol. Finch said that despite the tough environment, the performance demonstrates the strength of the company’s established strategy, product mix, and geographic footprint.
Management attributes the positive results to the benefits of a lower cost operating model, sustained investment in the business, and an ongoing commitment to self-help. The company is also maintaining its focus on its core development areas. By controlling costs and refining its approach, the builder aims to sustain this momentum into the next fiscal year.
Practically, this strategy means that while the broader market cools, Persimmon is attempting to hold its ground by focusing on efficiency and product appeal rather than relying on price drops. It is a delicate balance to strike when the wider economy puts pressure on household budgets, but the company believes its specific operational choices allow it to weather the storm better than many competitors.
Dean Finch added: “In a challenging market, this performance demonstrates the strength of our established strategy, product mix and geographic footprint, alongside the benefits of our lower cost operating model, sustained investment in the business and ongoing commitment to self-help. We remain on track to deliver growth in 2026 in line with market expectations.”