Finance
UK's Persimmon says 'mindful' of economic woes, home completions on track
Published by Global Banking & Finance Review®
Posted on May 1, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 1, 2025
2 min readLast updated: January 24, 2026
Persimmon is on track with home completions but remains cautious of economic uncertainties affecting demand and mortgage rates.
(Reuters) -UK homebuilder Persimmon said on Thursday it was currently on track to deliver its annual target for home completions, but was cautious of how widespread economic uncertainty could affect affordability and demand.
The company said ongoing geopolitical uncertainty had not yet impacted business or consumer confidence, or its supply chain and sales rate, but was "mindful" of possible impact of economic uncertainties on mortgage rates and consumer spending.
That caution undercut what analysts called a "good start to the year" after Persimmon's sales rate for the three-month period ended April 27 was 1% higher than last year.
The company's shares fell as much as 2.36% earlier in the session, but reversed losses to trade 0.6% higher, as of 0811 GMT.
Housing demand in the UK has been through the wringer in recent years.
While the market overall has recovered since the pandemic and the Labour government has sought to revive the sector, rising inflation, slower-than-expected interest rate cuts and an end to a discount on property transactions are weighing on demand.
Still, Peel Hunt analysts view Persimmon as "well placed in the context of a recovering market."
They said the company's broad presence should help it with selling prices, while having a central production process and specialty in timber frames will aid in managing any cost increases or supply issues.
Persimmon's forward sales position, which measures sold properties pending construction, grew to 2.34 billion pounds ($3.11 billion) for the reported period, from 2.09 billion pounds a year earlier.
The company also said that any impact from U.S. tariffs was expected to be limited and indirect as it does not trade directly with the U.S. market.
($1 = 0.7522 pounds)
(Reporting by Simone Lobo and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich)
Persimmon is currently on track to meet its annual target for home completions, despite economic uncertainties.
The UK housing market has faced challenges from rising inflation, slower interest rate cuts, and geopolitical uncertainties.
Persimmon's forward sales position grew to 2.34 billion pounds, up from 2.09 billion pounds a year earlier.
Persimmon's shares fell by 2.36% but later recovered to trade 0.6% higher.
The company expects any impact from U.S. tariffs to be limited and indirect, as it does not trade directly with the U.S. market.
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