Persimmon sees home sales beat forecasts but cautions over market outlook

Housebuilder Persimmon has said it delivered more home sales than expected in a “challenging” market last year, but cautioned trading conditions are not set to significantly improve over the year ahead.

The Charles Church builder reported a 12% rise in new home completions to 11,905 last year, with average selling prices in the private market up 5% to around £301,000.

It now sees full-year underlying pre-tax profits at the upper end of the £415 million to £440 million range expected in the market.

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

“We have delivered a 12% growth in completions, ahead of market expectations, and we expect to report underlying profit before tax at the upper end of market expectations,” he said.

But the group added a note of caution over the outlook amid pressure on homebuyer finances.

It said: “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.”

UK housebuilding activity has remained in its deepest slump since the start of the pandemic while the wider construction sector has been in contraction for a year, according to the most recent closely-watched S&P Global UK construction purchasing managers’ index survey.

The Bank of England cut interest rates four times in 2025, to 3.75% after a year-end quarter point cut in December.

But homebuyers are still constrained by rising costs while many are yet to roll off far cheaper fixed rate deals.

Despite this, Persimmon said if market conditions remain stable it remains on track for pre-tax profits to rise over the year ahead, with the City predicting between £461 million and £487 million, and an increase in home completions to 12,043.

It said forward sales stood at £1.17 billion, up 2% on a year earlier, including a 4% rise in private forward sales to £680 million at an average selling price of around £293,400.