York-based house building giant Persimmon plc said on Tuesday its total completions in 2025 were up 12% to 11,905 homes, “ahead of market expectations.”
In a trading update, Persimmon said private home completions were up 8% to 9,830 with 2,075 partnership homes delivered in the period.
The group’s private average selling price was up 5% on the prior year at £301,000, with incentives stable at 4-5%.
“We expect full-year underlying profit before tax for 2025 to be at the upper end of market expectations,” said the York firm.
“As outlined previously, the underlying housing operating margin is expected to be towards the lower end of the guided range (14.2% to 14.5%).
“The value of our forward sales position increased 2% to £1.17bn (2024: £1.15bn) even as we achieved double digit growth in completions.
“Within this, £680m relates to private forward sales (2024: £653m), up 4%. This reflects good growth in private sales to owner occupiers, partly offset by a reduction in bulk sales within the order book as a result of the softening in demand seen in Q4.
“The private average selling price in the order book was c.£293,400, up 6% on the position at the same point last year (2024: £276,857).”
In its outlook, the York company said: “Persimmon performed well during 2025, in a challenging market. The investment made in the business over recent years and our self-help strategy has positioned us well. We continue to develop an excellent pipeline of land opportunities that will underpin continued outlet and volume growth in the coming years.
“We entered 2026 with a robust order book. While we are not expecting any material improvement in market conditions this year, early indications from our Boxing Day marketing campaign are encouraging.
“Recent reductions in mortgage rates are helpful for our private customers although we remain mindful of continued affordability constraints. In addition, fewer bulk sales in the order book, and continued challenges in the registered provider market, are likely to slow our growth in these markets in 2026.
“At this stage, we expect underlying build cost inflation to be similar to 2025 and we remain in a strong position to manage costs given our unique level of vertical integration.
“We are conscious of additional regulatory costs, and we will continue to look to mitigate these where possible. For example, landfill tax charges will double from April 2026 with further annual increases thereafter.
“We welcome government changes to the planning system, although these will take time to fully take effect. Assuming trading conditions remain stable, we are on track to achieve current market expectations for 2026.”
Persimmon CEO Dean Finch said: “Persimmon performed well during 2025, in a challenging market. We have delivered a 12% growth in completions, ahead of market expectations, and we expect to report underlying profit before tax at the upper end of market expectations.
“This performance demonstrates the benefit of our sustained investment in recent years, alongside our self-help strategy, broad geographic coverage and increased outlets, to create a differentiated growth platform.
“I want to extend my thanks to our colleagues, subcontractors and suppliers for their support during 2025, and their role in helping us deliver high-quality, sustainable homes at affordable prices to our customers.”
REACTION:
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “Housebuilder Persimmon came out of the gates swinging by delivering a 2025 performance ahead of market expectations. Net private sales rates were in line with the prior year, despite a softening market ahead of the UK Budget in November.
“But both the order book and average selling prices were trending higher. That’s in part due to Persimmon’s houses being priced around 15% below the newbuild national average, offering some resilience to the current market challenges. As a result, full-year underlying pre-tax profits are now expected to land at the top end of current market expectations, which currently stand at £415-440mn.
“Looking ahead, buyer affordability will remain a key challenge for Persimmon to wrestle with in the new year. The market’s currently pricing in two rate cuts by the end of 2026, which should help buoy buyers’ purchasing power slightly.
“Persimmon expects cost inflation to remain at a manageable level, helped by its in-house materials business, which provides quicker and cheaper access to key materials, shaving off around £5,000 worth of costs.
“With its valuation sitting well below the long-run average, Persimmon offers an attractive way to play the UK housing market, and there’s a prospective dividend yield of 4.7% on offer to reward potential investors for their patience.”