Persimmon has stated that it does not expect any "material improvement" in market conditions in 2026, despite boasting a robust order book and a positive outlook following a reduction in mortgage rates.

The housebuilder revealed in its trading update for the year to 31 December that new home completions jumped by 13% to 11,905, which was ahead of market expectations, while its average selling price stood at around £278,000, a 4% year-on-year increase.

However, its net private sales per outlet per week remained flat at 0.70, while its net cash dropped by £143m to around £116m.

Despite this, the group's forward sales at the end of 2025 increased by 2% year-on-year at £1.17bn.

Group chief executive at Persimmon, 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."

Persimmon stated that the investments it has made into the business over recent years and its self-help strategy have positioned the firm well.

It added that it had entered 2026 with a robust order and its early indications from its Boxing Day marketing campaign are encouraging, despite the housebuilder not expecting any material improvements in market conditions.

The firm expects underlying build cost inflation to be similar to 2025 and said it remains in a strong position to manage costs. It also remains conscious of additional regulatory costs, and it will continue to mitigate these where possible.

Following its trading statement, Persimmon saw its share price drop by 1.5%.

Head of markets at AJ Bell, Dan Coatsworth, said that the housebuilder’s latest update offers some hope that 2026 could be a "better year" for the industry.

He concluded: "The company has been able to ramp up the number of completions appreciably and 2026 is underpinned by a robust order book. A reduction in bulk orders and a dip in the social housing market are potential headwinds but if interest rates and inflation continue to ease then more people should be able to afford the mortgage required to purchase their dream home.

"For now, management are remaining conservative and sticking with current guidance. This is a sensible move given the recent disappointments served up by the sector. Even within the improving picture, it is worth noting that earnings are still a long way behind the peaks seen in 2021.

"Investors will be looking for more detail on the medium-term outlook when Persimmon reports its full-year results in full in March."

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