Housebuilder Persimmon has said it expects to deliver home completions at the "upper end" of targets, despite a challenging property market.
Boss Dean Finch said that "affordability constraints and build cost pressures" are continuing to drag on the industry. However, the company said profits are on track with guidance and it expects to complete around 12,500 homes in 2026, at the top end of its previous guidance.
First-half results
It came as Persimmon revealed that new home completions were up 13% to 5,189 for the first half of the year. Meanwhile, group revenues lifted by 15% to £1.73 billion for the six months to June 30, compared with a year earlier. It also revealed that pre-tax profits were 15% higher at £168 million.
The group said it reported an improved private sales rate after efforts to improve the customer proposition across its three brands. Net private sales were up 6% in the five weeks to the end of June, but the company said open market sales have "softened slightly in recent weeks" due to tough conditions in the wider housing market.
CEO comment
Mr Finch said recent trading represented a "strong" performance by the company over the half-year. He 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. I want to thank all my colleagues and our supply chain for their continued hard work in delivering this result."
Analyst view
Oli Creasey, head of property research at Quilter Cheviot, said: "Persimmon's first half results are unusual for a UK housebuilder as the company is in relatively good shape.
"Housebuilders are operating in one of the most challenging markets in recent history, and Persimmon is navigating it well. While performance is below long-term averages, particularly the pre-Covid period when Help to Buy was boosting sector-wide returns, the company remains well ahead of peers."
