Persimmon on track to build more homes than last year despite 'challenging' market
Housebuilder Persimmon said it expected to increase the number of homes it builds this year to just under 12,500, despite what it described as a "challenging" market.
Persimmon said in a trading update that it was on track to achieve analysts expectations, which currently see the company completing 12,472 homes in the full-year.
The figure would mark a lift from the 11,905 homes completed by Persimmon in 2025.
It came as Persimmon saw planning approvals for the nine months to 30 September lift to 8,722, up from 7,753 a year prior.
Dean Finch, group chief executive of Persimmon, said: “We are pleased to have sustained our resilient performance in a challenging market, with our market share continuing to grow.
“Our clear strategy has allowed the Group to increase both sales and planning approvals at a time when the overall sector is declining.
We expect to deliver another year of volume and profit growth, reflecting continued progress against our strategy and the strength of our three brands, product mix, national footprint and low-cost operating platform. We remain on track to deliver our 2026 performance in line with market expectations.”
The company added that looking ahead to 2027, it expects to continue growing volumes as a result of its “strengthening” land pipeline, planning success and outlet expansion. Persimmon’s total forward sales in the nine month period landed at £2.82bn, up from £2.79bn a year prior. Net private sales per outlet per week also lifted four per cent to 0.79.
The company added in its trading update: “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.
“Inflationary pressures are expected to increase costs by c.£30m-£40m in 2027, as set out in August, which together with higher financing costs are expected to limit near-term profit progression.”
Persimmon said it had “already identified actions that are expected to substantially mitigate these headwinds by 2028”.
Speaking on Persimmon’s update, Oli Creasey, head of property research at Quilter Cheviot, said: "Persimmon's third quarter trading statement is a reminder that not every UK housebuilder is sliding backwards.
“The company's guidance for 2026 remains unchanged, and is an improvement compared to last year, notably the expected sales volume of 12,500 homes. We would argue that holding ground in an environment where peers such as Taylor Wimpey are making cuts to guidance is in itself a good outcome.”