Persimmon, one of Britain’s largest housebuilders, reported a strong first half of 2026, defying sector challenges with increased home completions and rising profits. The company delivered 5,189 new homes in the six months ending June, marking a 13% rise compared to the same period last year. Persimmon expects to reach the upper end of its full-year target of approximately 12,500 homes.
The firm’s revenue increased by 15% to £1.73 billion, while pre-tax profit rose by 15% to £168 million. Average sales prices edged up 1% to £285,752, buoyed by strong demand for its premium Charles Church brand, where completions jumped 25% to 555 homes. Additionally, deliveries to housing associations rose significantly by 50% to 928 units, supported by strategic partnerships.
Chief Executive Dean Finch acknowledged ongoing pressures in the market, including affordability constraints, higher building costs, and a softening in buyer inquiries since July. He attributed part of the recent market slowdown to geopolitical tensions in the Middle East, which have contributed to increased mortgage rates and weakened consumer confidence. In addition, factors such as the World Cup, a heatwave, and political changes have also dampened demand in recent months.
Despite these difficulties, Persimmon’s internal manufacturing capabilities for bricks, roof tiles, and timber frames have allowed it to manage rising costs more effectively than some competitors. This contrasts with peers such as Taylor Wimpey, Barratt, Redrow, and Berkeley, which have scaled back land acquisition targets amid a broader housing market slowdown. Taylor Wimpey, for example, has notably reduced shareholder returns amid concerns over a prolonged downturn.
Persimmon also cautioned that ongoing global uncertainties, including trade tensions and the Middle East conflict, could add between £40 million and £50 million to costs over the coming 18 months. Nonetheless, the company remains on track to meet full-year underlying pre-tax profit guidance of £454 million.
The housing market’s longer-term issues, such as a chronic undersupply of homes and persistent affordability challenges, remain a major concern. Finch highlighted that these factors are a key focus for the government under Prime Minister Andy Burnham. Burnham has pledged to invest £39 billion in what is described as the largest council housebuilding programme since the postwar period, prioritizing brownfield developments to protect greenbelt land and regenerate urban areas. This initiative comes in response to a significant decline in local authority housing construction since the 1980s, following policies such as right-to-buy sales of council homes.
Overall, Persimmon’s performance underscores resilience amid a complex economic and geopolitical environment, while highlighting ongoing challenges facing the UK housing market.