Persimmon beats gross sales forecasts however expects no enchancment in market this yr regardless of Labour’s home constructing plans

Persimmon said it had delivered more home sales than expected in a ‘challenging’ year but expects no improvement in the market this year.

The housebuilder reported a 12 per cent increase in new home completions to 11,905 in 2025, with the average private selling price rising 5 per cent to around £301,000.

It expects full-year underlying pre-tax profits at the upper end of its £415-440million range.

Chief executive Dean Finch said Persimmon ‘performed well during 2025, in a challenging market.’

He added that its performance in 2025 ‘demonstrates the benefit of our sustained investment in recent years’.

The value of Persimmon’s forward sales position also increased 2 per cent to £1.17billion even after double digit growth in completions. 

Within this, £680million relates to private forward sales, a 4 per cent increase on the previous year.

The housebuilder said it had entered the year with a ‘robust’ order book but warned that pressure on homebuyer finances persists.

‘While we are not expecting any material improvement in market conditions this year, early indications from our Boxing Day marketing campaign are encouraging.

‘Recent reductions in mortgage rates are helpful for our private customers although we remain mindful of continued affordability constraints.

‘In addition, fewer bulk sales in the order book, and continued challenges in the registered provider market, are likely to slow our growth in these markets in 2026.’

Housebuilding activity has suffered its biggest slump since the pandemic, according to a recent industry survey, with much of the blame placed on the timing of the November Budget.

The monthly purchasing managers’ index (PMI) report, compiled by S&P Global, showed the construction sector shrank for the 12th month in a row.

However, Persimmon expects building costs for 2026 to be similar and it says if trading conditions remain stable, it is on track to achieve its current market expectations.

‘We are conscious of additional regulatory costs, and we will continue to look to mitigate these where possible. 

‘For example, landfill tax charges will double from April 2026 with further annual increases thereafter. 

‘We welcome government changes to the planning system, although these will take time to fully take effect.’

Shares in Persimmon inched 0.39 per cent higher in early trading.

Richard Hunter, head of markets at Interactive Investor said: ‘Investors have begun to factor in the potential turnaround in fortunes for the housebuilders, and as one of the preferred plays in the sector Persimmon has seen a particular benefit.

‘The shares have risen by 31 per cent over the last year, as compared to a hike of 23.3 per cent for the wider FTSE100, including a jump of 25 per cent in the last three months alone. 

‘From an investment and valuation perspective, however, there is plenty more gas in the tank. 

‘The shares remain down by 49 per cent compared to five years ago and the market consensus of the shares as a strong buy reflects the renewed optimism.’