"I am 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"
- Dean Finch - Persimmon
Persimmon increased private completions by 7 % in the first half of 2025, with total completions up 4 % year-on-year, according to its half-year results for the period ending 30 June. The volume housebuilder said the growth came in the context of a challenging housing market, with affordability pressures still limiting demand.
Private completions reached 3,987 homes, contributing to total completions of 4,605. The average private sales price rose 7 %, reflecting a greater share of the higher-end Charles Church brand and what the company described as “robust pricing”. Across all homes, the average sales price increased 8 % to £284,047.
Revenue from new housing rose 12 % to £1.31 billion, while underlying operating profit increased 13 % to £172 million. Underlying pre-tax profit was up 11 % to £164.9 million. The net private sales rate per outlet per week, excluding bulk sales, rose 5 % to 0.62; including bulk sales, the rate was 0.70 compared with 0.71 in the same period last year.
Persimmon described its performance as “particularly pleasing” given the backdrop of elevated mortgage and interest rates, which, although easing, continued to deter some buyers. It noted positive signs from easing lending criteria and real-terms pay increases, but pointed to the impact of higher council tax, national insurance, stamp duty and energy bills introduced in April, as well as wider economic uncertainty affecting consumer confidence.
The company said its pricing remained significantly below that of its largest competitors. While it reaffirmed guidance for full-year completions between 11,000 and 11,500 homes, it cited ongoing affordability challenges and rising industry-wide costs as factors likely to influence margins. For 2025, it expects a housing operating margin between 14.2 % and 14.5 %.
In the five weeks since 30 June, the net private sales rate excluding bulk sales averaged 0.61, compared with 0.55 in the same period in 2024. Including bulk sales, the figure was 0.68 versus 0.69 last year.
Dean Finch, group chief executive, said: “I am 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. Our average sales price, sales, completions, planning approvals, active sites, and forward order book are all up, many against industry trends, showing that our strategy, including a focus on self-help, has continued to deliver. An improvement in operating profit and return on capital demonstrates the benefit of our ongoing operational discipline.”
