Persimmon raises annual target, eyes growth from Burnham's housing push

Persimmon announced an upgraded outlook for the current year, targeting the completion of 12,500 dwellings, which sits at the upper limit of its earlier forecast. The housebuilder reported a 15% jump in pre-tax earnings to £168 million for the first half and a 13% rise in the number of homes constructed, despite higher building costs linked to the Iran war. Executives said the company’s focus on affordability and a growing land pipeline makes it well-placed to capture demand generated by Prime Minister Andy Burnham’s housing programme, which includes expanding council-house construction and reducing costs for buyers.

Persimmon also detailed additional cost-control actions, from procurement savings to design optimisation, though it cautioned that inflationary pressures may persist. S&P Global data indicated that construction activity slowed its decline in July, hinting at a tentative stabilisation of the sector. Analysts noted that faster planning approvals, skill shortages, and regulatory delays remain challenges, but government reforms could improve outlook.