Highlights

  • Home completions increased 12% year-on-year, exceeding prior market volume expectations.
  • Forward sales value edged higher despite lower bulk sales activity late in the year.
  • Underlying profit before tax expected at the upper end of market expectations.

Persimmon Plc (LSE:PSN) released a trading statement ahead of its final results for the year ended 31 December 2025, scheduled for publication on 10 March 2026. The update outlines performance during a period described as challenging for the UK housing market, with higher completion volumes and stable sales rates across outlets.

Total new home completions rose to 11,905 units in 2025, compared with 10,664 homes in 2024. Private completions increased to 9,830 units, while partnership housing deliveries reached 2,075 units over the year. The rise in completions reflected a broader outlet base and continued geographic diversification.

Pricing and Sales Metrics
The blended average selling price increased to approximately GBP 278,000, up from GBP 268,499 a year earlier. Private average selling prices rose to around GBP 301,000, while partnership average selling prices increased to roughly GBP 168,000. Incentives remained broadly stable at around 4–5% during the year.

Net private sales per outlet per week, including bulk sales, were unchanged at 0.70. Excluding bulk sales, the sales rate improved to 0.59 from 0.57 in the prior year. Some softening in Build to Rent demand was observed during the fourth quarter.

Outlet Expansion and Forward Sales
The company opened approximately 100 new outlets during 2025, ending the year with 277 active outlets and operating from an average of 271 outlets across the period. This compared with an average of 261 outlets in 2024.

Forward sales at year-end stood at GBP 1.17bn, up from GBP 1.15bn in the previous year. Private forward sales accounted for GBP 680m of this total, reflecting higher owner-occupier demand partially offset by reduced bulk sales commitments.

Financial Position and Land Investment
Gross land expenditure for the year totalled approximately GBP 560m, including GBP 195m related to land creditor settlements. Land holdings under ownership or control increased to around 84,750 plots by year-end. Net cash at 31 December 2025 was approximately GBP 116m, following shareholder returns of GBP 192m.

The group also continued its building safety remediation programme, incurring around GBP 60m of related expenditure during the year.

Outlook for 2026
Entering 2026, Persimmon reported a sizeable order book and expects underlying build cost inflation to be similar to 2025 levels. While no material improvement in overall market conditions is anticipated, recent mortgage rate reductions have provided some support for private demand. Fewer bulk sales and ongoing pressures within the registered provider market are expected to influence growth trends during 2026.

Share Performance
PSN shares trade at 1,397.00, down 1.24% at the time of writing.