Persimmon Holds Guidance as Orders and Prices Nudge Higher

What Persimmon reported

York-based Persimmon said on Thursday that private forward sales were 3% higher than a year ago at £2.2 billion ($2.92 billion). It also achieved a 2% year over year lift in average selling price and a 12% rise in planning approvals. The company maintained its goal to complete 12,500 homes this year.

Market reaction and backdrop

In the opening hours in London, the shares were up 4.47% at their peak, marking the largest swing in roughly six weeks. This update came after rival Taylor Wimpey said profits would land at the lower end of its guided range, citing buyers struggling with higher borrowing costs. A Royal Institution of Chartered Surveyors survey the same day said British property agents are the most pessimistic about home sales in three years.

Costs and CEO view

"Our clear strategy has allowed the group to increase both sales and planning approvals at a time when the overall sector is declining," said Chief Executive Officer Dean Finch. Persimmon noted that build costs remain elevated, with conflict in the Middle East lifting energy and material prices, and projected an increase of £30 million to £40 million in build costs next year.

Smart investors look for reliable tools to gain a steady advantage over time. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

Why it matters for investors

In plain English: orders and prices are edging up, but cost inflation is still a headwind. That helps near term revenue resilience, while margins into next year hinge on how those £30 million to £40 million of extra build costs collide with any easing in mortgage pressure. The bottom line: steadier order books are constructive, yet earnings power will likely track cost trends and buyer affordability.

Learning how new tools fit your strategy can make decision making more confident. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.