Persimmon increased first-half completions, revenue, and profit as the housebuilder expanded volumes despite continuing affordability and construction-cost pressures.
The company completed 5,189 homes during the six months to 30 June, an increase of 13% from 4,605 a year earlier. Private completions rose by 7%, while partnership completions increased by 50%.
Total group revenue climbed by 15% to £1.73bn. Reported profit before tax rose by the same percentage to £168m, while underlying profit before tax increased by 3% to £170.1m.
Underlying operating profit grew by 10% to £189.1m, although the new-housing operating margin declined by 30 basis points to 12.8%. The reduction reflected a higher proportion of partnership homes, construction-cost inflation, and the use of buyer incentives.
The average selling price across completed homes rose by 1% to £285,752. Persimmon’s private average selling price increased by 3%, while 51% of private sales completed below £300,000.
The private forward-order book stood at £1.31bn at the end of the period, 5% higher than a year earlier. Persimmon now expects to complete approximately 12,500 homes during 2026, at the upper end of its previous guidance.
The company’s volume growth was supported by a stronger sales rate and a stable number of active outlets. Its net private sales rate increased by 7% to 0.75 homes per outlet per week, or by 3% to 0.64 when bulk transactions were excluded.
Persimmon also secured detailed or reserved-matters planning approval for 6,123 plots during the half. That pipeline is important because the availability of consented land determines how quickly housebuilders can open outlets and increase production.
The results illustrate how a large developer can increase output while the wider construction sector remains under pressure. Purchasing managers’ data for July showed continuing contraction in housebuilding, although the rate of decline moderated from the severe weakness recorded during the second quarter.
Scale, land holdings, vertical integration, and access to capital give national housebuilders greater ability to manage volatility than many smaller developers. Persimmon owns manufacturing operations supplying timber frames, bricks, tiles, and other components, reducing some reliance on external providers.
Use of its Space4 timber-frame product increased by 30% during the period. Greater factory utilisation can provide more control over cost, quality, and delivery, although it requires sufficient volumes to keep manufacturing assets productive.
The company ended June with net debt of £165m, compared with net cash of £123m a year earlier. The movement reflects land investment, development expenditure, shareholder distributions, building-safety work, and the working-capital demands associated with higher construction activity.
Demand remains constrained by mortgage affordability and the cost of deposits, even where underlying housing need is strong. Incentives can support reservations and completions but affect margins where buyers require greater assistance to proceed.
The composition of output also influences profitability. Partnership housing provides more predictable demand through housing associations, local authorities, or institutional buyers, but typically generates lower margins than private open-market sales.
Persimmon’s 50% increase in partnership completions supported overall volumes while contributing to the reduction in operating margin. The model can nevertheless provide certainty during periods when individual purchasers are more cautious.
The government’s housing objectives require a substantial increase in completions across England. Planning reform may improve the flow of sites over time, but developers also need skilled labour, utility connections, transport infrastructure, mortgage demand, and confidence that completed homes can be sold at viable prices.
Build costs remain another uncertainty. Persimmon expects construction-cost inflation of approximately 3% to 4% during 2026 and has said that affordability constraints and industry-wide expenses will continue to affect margin recovery.
The company has maintained its minimum annual shareholder return at 60p a share, currently paid through dividends. Its capital-allocation policy also prioritises land investment, business capabilities, and building-safety remediation.
Persimmon’s increased guidance indicates that its existing land, outlet network, and order book can support further growth this year. Maintaining that momentum without deeper margin erosion will depend on sales demand, cost control, and the speed with which planning approvals translate into active sites.
The results provide a stronger operational platform, but the balance between volume and returns remains central. Higher completions will need to generate improved cash flow and margins if the company is to meet its medium-term ambitions.
