Persimmon reports an increase in sales, but warns about barriers for buyers

• Persimmon increased sales by 4% in the first half of the year.
• High interest rates remain a barrier for buyers.
• The company plans to sell up to 11,500 homes in 2025.

The construction company Persimmon announced an increase in sales in the first half of 2025, but noted that high interest rates on mortgages still pose a significant barrier for buyers.

The company from York reported that in the first half of the year, 4,605 homes were sold, which is 4% more than in the same period last year. The average selling price of homes increased by 8% to approximately £284,000.

Persimmon expects to finish sales of between 11,000 and 11,500 homes in 2025, and approximately 12,000 in 2026. The indicator of previous sales, that is, homes that are reserved but not yet sold, increased by 9% compared to last year.

General Director Dean Finch stated that the company continues to grow, despite the challenging market conditions and barriers to housing affordability, which particularly affect first-time buyers, who make up nearly three-quarters of private sales.

Although interest rates on mortgages have decreased due to a reduction in the Bank of England's base rate, they still remain at levels that limit the possibilities of many potential clients. Additionally, rising costs for utility services, taxes, and energy also reduce housing affordability.

Persimmon indicated that prices for their homes are lower than those of their largest competitors, and the company has improved its proposition for affordable housing, including shared ownership programs.

Amid positive trends in the market, the company has begun to increase salary payments, which improves affordability for some buyers, as well as softens some lending conditions.

Tags: Economy