Persimmon delivered robust first-half results with home sales rising 4% to 4,605 properties despite ongoing affordability challenges in the UK housing market. The York-based developer remains on track to meet its yearly sales target of 11,000 to 11,500 completions.
Operating profit surged 13% to £172m while profit before tax increased 11% to £164.9m, according to City A.M. Forward sales jumped 9% with the order book now worth £1.25bn, up 11% from the prior year.
Strong financial performance
The average sale price jumped 8% to approximately £284,000, The Standard reports. Persimmon expects to complete around 12,000 home sales in 2026, building on this year's momentum.
Chief executive Dean Finch said he was "pleased that we have continued to grow in the first half of the year despite challenging market conditions and with affordability still an important constraint." First-time buyers, who represent about a third of private sales, face particular difficulties.
Affordability barriers persist
Mortgage rates remain at "levels that still present a barrier to many potential customers" despite recent Bank of England base rate cuts. Rising household costs including council tax, stamp duty and energy bills have further weakened affordability for many buyers.
The housebuilder emphasised its homes are priced lower than major rivals and highlighted improved affordable homeownership options like shared equity schemes. Positive market developments include pay rises helping some buyers and easing of certain mortgage lending rules.
Market outlook
According to City A.M, the UK house price-to-income ratio currently stands around 5.75 times, down from the 2022 peak of 6.9 times but still elevated. The company maintains its guidance for steady growth through challenging market conditions.
Sources used: "PA Media", "City A.M", "The Standard" Note: This article has been edited with the help of Artificial Intelligence.
