Persimmon sees home sales beat forecasts but cautions over market outlook

Dan Coatsworth, head of markets at AJ Bell, said: “Persimmon’s latest update offered some hope that 2026 could be a better year for housebuilders.

“Guiding for a full-year outcome at the top end of expectations, despite an autumn selling season disrupted by a late-in-the-year Budget, is a solid achievement.

“The company has been able to ramp up the number of completions appreciably and 2026 is underpinned by a robust order book.

“A reduction in bulk orders and a dip in the social housing market are potential headwinds but if interest rates and inflation continue to ease then more people should be able to afford the mortgage required to purchase their dream home.

“Build cost inflation is expected to remain stable, despite the impact of regulatory costs, including a big increase in landfill taxes.

“Persimmon’s control of its supply chain – including in-house production of bricks, tiles and timber frames – should help it keep a lid on costs.

“For now, management are remaining conservative and sticking with current guidance. This is a sensible move given the recent disappointments served up by the sector.

“Even within the improving picture, it is worth noting that earnings are still a long way behind the peaks seen in 2021.

“Investors will be looking for more detail on the medium-term outlook when Persimmon reports its full-year results in full in March.”