Persimmon Flags Energy-Led Cost Pressures While Maintaining 2026 Home Delivery Targets

May 4: Persimmon has warned that rising energy prices are beginning to feed into construction cost inflation, while maintaining its home delivery targets for 2026 following stable sales performance in the early part of the year.

Sales Performance

The company reported weekly net private sales per outlet rose 3 per cent to 0.67 during the year to date. However, buyer enquiries have moderated in recent weeks due to rising mortgage rates impacting consumer sentiment.

Supply Chain Advantage

Persimmon indicated that its integrated supply model, including in-house production of bricks, tiles and timber frames, has helped mitigate cost escalation compared to peers. This has provided greater control over input costs amid global energy market volatility.

Outlook

The company expects full-year pre-tax profit for 2026 to remain in line with market expectations of approximately GBP 462 million (USD 622 million equivalent).

Persimmon stated it is reviewing its cost base and adopting a more disciplined approach to land acquisitions while continuing to invest selectively in new sites.

Sector Context

Broader UK housebuilding sector has shown caution, with Berkeley Group flagging slower profit growth and scaling back new land purchases. Barratt Redrow and Taylor Wimpey have also moderated land approvals in response to market conditions.