Positive Persimmon looks to tap into ‘Burnham bounce’ on housebuilding
Summary
UK housebuilder Persimmon has raised its yearly outlook and expects to complete 12,500 new homes by the end of the year. The company aims to benefit from Prime Minister Andy Burnham’s housing policies, despite rising building costs linked to global issues like the Iran conflict.Key Facts
- Persimmon plans to build 12,500 new homes in 2024, at the top of its previous forecast.
- The company’s pre-tax profits rose 15% to £168 million in the first half of the year.
- Homebuilding increased by 13% during the same period.
- Persimmon expects rising costs due to inflation and the Iran war, which may continue into 2027.
- It is the most cost-efficient national housebuilder in the UK, focusing on affordable homes.
- The firm is working on cost-saving measures like better buying strategies, improving house designs, cutting overhead expenses, and boosting operational efficiency.
- The UK housing market faces a long-term shortage of homes and affordability problems for buyers.
- Persimmon believes it is well-positioned to grow because of a strong land supply and expanding sales outlets.
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