York-based house building giant Persimmon plc said its current private forward sales have increased 17% to £1.68 billion with a private average selling price of c£293,300, up 4% on the position at the same point last year.
In an AGM update on trading for the period from January 1, 2025, to April 27, 2025, Persimmon said total current forward sales were up 12% to £2.34 billion.
“We continue to have good planning success with 2,781 plots achieving detailed or reserved matters approval in the first quarter (2024: 1,457), supporting our outlet growth ambition,” said Persimmon.
“We are encouraged by the Government’s planning reforms, including the NPPF and the measures in the Planning and Infrastructure Bill published earlier this year.
“These will provide further momentum to the business in the coming years. We opened 27 new outlets in the period and are currently operating from 275 outlets, up 5% on the prior year (2024: 262). We continue to expect to open around 100 gross outlets during 2025 as we progress towards our target of operating from at least 300 outlets.
“Gross land spend in the first three months of the year was £128m (2024: £145m) of which £76m related to the settlement of land creditors (2024: £96m). Our owned and under control land holdings stood at c.83,800 plots at 31 March 2025 (2024: c.82,500 plots).”
In its outlook, Persimmon said: “We are pleased with our 2025 performance so far and continue to expect weighting of delivery to be similar to 2024. The investment made in the business over recent years has positioned us well, allowing us to operate from a growing outlet base and to deliver improved sales rates.
“We have not yet seen any impact of the heightened macroeconomic uncertainty on either our supply chain or our sales rates. Persimmon does not trade directly with the US market and consequently has no direct exposure to the recently announced tariffs.
“At this stage, the indirect impact is expected to be limited. However, we are mindful of the current economic uncertainties and the impact that these may have on mortgage rates and consumer spending. Nevertheless, at this stage we believe we remain on track to deliver growth in full year 2025 completions, to between 11,000 and 11,500 homes, with over half of our private homes and almost all of our housing association homes already secured.
“Our market fundamentals remain strong and we are confident the business will increase margins, returns and shareholder value over the medium term.”
Persimmon CEO Dean Finch said: “Persimmon has started the year well, building on our strong performance in 2024 with an improved private sales rate, an increase in average selling prices and further growth in our network of outlets.
“As a result, our private forward sales are up 17% on the prior year. We have continued our investment in new land and achieved further planning success in the period.
“We have seen no immediate impact on the business or on customer confidence from the recent geopolitical uncertainty. Consequently, at this stage we remain on track to deliver further growth in completions to between 11,000 and 11,500 for the full year, providing the UK housing market remains stable.”
REACTION:
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Persimmon’s building on its strong performance in 2024 and looks like one of the best-placed names to benefit from any potential uplift in the sector. Improving sales rates, higher average selling prices and a growing order book all paint a very encouraging picture of current and future trading.
‘This positive sales momentum should feed down to the bottom line and help profits return to growth after two years of declines. The in-house materials businesses, which we see as a key differentiator, should help on this front too. They give Persimmon quick and cheaper access to key materials. When Persimmon’s able to use its own bricks, tiles and timber, it saves around £5,500 per plot.
‘Persimmon’s houses are typically priced more than 20% below the newbuild national average, so sales tend to be more resilient in times of uncertainty. With operations focused in the UK, Persimmon’s not seeing the after-effects of US tariffs yet, either across its supply chains or in its sales rates. With shareholder payouts a key focus and Persimmon’s valuation sitting some way below the long-term average, this could mark an opportunity for long-term investors.”