Persimmon has seen its revenue increase by over 10% annually in the first half of the year to £1.32bn, as it beat the previous year’s number of home completions.

The housebuilding firm saw the number of home completions jump by 5% to 4,445 in H1, including a 14% increase in private completions to 3,742.

As a result, it is on track for around 10,500 home completions for the full year, which is at the top end of its previous guidance.

Persimmon’s underlying profit increased by £100,000 to £152.3m, with the group stating that this was impacted by embedded build cost inflation and private sales mix in the forward book at the start of the year, "as expected".

Furthermore, the group’s profit before tax reduced by 3% to £146.3m, as a result of investments throughout the year.

Group chief executive at Persimmon, Dean Finch, said: "The first half of the year has been strong with improved sales rates and robust average selling prices, despite ongoing affordability challenges. Strengthening consumer sentiment, improving macro-economic conditions and the government's welcome and ambitious planning reforms that demand more of the high quality, affordable homes that are Persimmon's core strength, are all supportive of our ambition to grow this year and in the future.

"We are opening more sites this year and will do the same next year, demonstrating the benefit of our continued land investment in recent years. This growing and strong platform means we are ready to deliver more of the homes our country requires while securing industry-leading returns over the medium-term."

In its outlook, Persimmon said that it was encouraged by the new Government’s planning announcements and said that consumer confidence continues to improve, leading to a pick up in enquiries and visitors, which it expects to be supported by the recent cut to the Bank of England’s base rate.

It added that its current private forward order book is up 28% at £1.12bn, and that it has confidence for further growth of outlets and volume going into 2025.

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, added: "Persimmon’s had a great first half to the year, despite the ongoing affordability issues weighing on buyers’ purchasing power. Revenue growth came from a healthy mix of both higher sales rates and average selling prices. Alongside its in-house materials business, which is a key differentiator against peers, Persimmon’s profitability looks to be holding up better than most this year too.

"Announcements by the new government, particularly around a reform to the national planning framework are encouraging signs for the whole housebuilding industry. Persimmon says it's seeing consumer confidence improving, with a strong pick up in enquiries and visitors at its sites.

"The recent rate cut by the Bank of England should help keep this momentum going into the second half."

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