Persimmon, the York-based housebuilder, has reported a 15% increase in group revenues to £1.73bn for the first half of the year, alongside a 13% rise in completions to 5,189 homes. Despite these gains, the company insists the UK housing market remains “challenging,” with affordability constraints and build cost pressures continuing to weigh on the sector.
Strong first-half performance
The company, which also operates the Charles Church brand, said it is on track to complete 12,500 homes in 2026, at the top end of its previous guidance. Profit before tax rose 15% to £168m, while average house prices on its properties increased 1% to £285,752. Net private sales were up 6% in the five weeks to the end of June, although open market sales have “softened slightly in recent weeks” due to tough conditions in the wider housing market.
Group chief executive Dean Finch attributed the strong performance to the company's established strategy, product mix, and geographic footprint, as well as its lower cost operating model and sustained investment. He said: “Persimmon delivered a strong first half performance, growing our market share, increasing completions by 13% and underlying operating profit by 10%. 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.”
Market conditions remain tough
Finch acknowledged that “market conditions remain challenging, with affordability constraints and build cost pressures affecting the sector.” He noted that the company has responded quickly with clear management action focused on driving operational efficiencies. “Our disciplined land buying, industry-leading cost efficiency and vertically integrated operating platform give us important structural advantages as we seek to mitigate cost pressures and support growth,” he added.
The company has increased its market share and believes it is “well-placed to drive further growth through our unique set of capabilities.” Persimmon is the UK’s fourth largest housebuilder by volume, though, like its rivals, it has seen the number of homes it builds fall in recent years due to wider economic challenges.
Strategy delivering growth
Finch expressed confidence in the company's strategic direction, stating: “Persimmon's strategy is delivering growth. Having significantly invested in our strategy over recent years, our focus is increasingly on converting those investments into improving returns. Our disciplined land investment at better margins, outlet growth, stronger brands and increasingly differentiated operating platform position us to progressively deliver higher volumes, stronger cash-generation and improving returns over time.”
He also thanked colleagues and the supply chain for their continued hard work in delivering the result. The company remains on track to deliver growth in 2026 in line with market expectations.
