Persimmon has reported a solid start to 2026, with private forward sales up 7% to £1.80bn and an improved sales rate carrying momentum from a strong 2025 into the new year.
After a string of disappointing housebuilder updates in recent week, expectations would have been low going into Persimmon’s update. But shareholders have been pleasantly surprised.
Net private sales per outlet per week rose 3% to 0.76 (or 0.67 excluding bulk sales), while average outlets nudged up 2% to 273 as the housebuilder pushes towards its target of operating from at least 300.
Total forward sales, including year-to-date legal completions, climbed 5% to £2.46bn, with the private average selling price up 5% to around £306,900 and total incentives holding steady at 4-5%.
Chief Executive Dean Finch said the business had started the year well, supported by an improved private sales rate and rising prices.
The conflict in Iran has not had any material impact on trading to date, although management is keeping a close eye on consumer confidence and there are early signs of supply chain inflation, particularly from higher energy costs, which are likely to feed through in H2 2026 and into 2027.
Mark Crouch, market analyst for eToro, says: “Persimmon’s update suggests a housing market that, for now, is holding firm, but the bigger picture for UK housebuilders is rapidly darkening. Persimmon’s numbers look solid enough, forward sales up, pricing holding firm, and volumes broadly in line with expectations.”
“But scratch beneath the surface, and storm clouds are gathering quickly. The war in Iran has sent energy prices sharply higher, feeding directly into inflation and pushing mortgage rates back up just as hopes of rate cuts were building. When it rains, it pours, and housebuilders sit squarely in the crosshairs of rising costs and weakening affordability.”
Persimmon shares were 2% higher at the time of writing on Thursday.