Persimmon sees 2027 volume growth but warns of rising cost pressures

what happened

According to Reuters, British homebuilder Persimmon said on Thursday that it expects volumes to rise in 2027, supported by investment in its land pipeline. It also said that rising construction costs will hit profit in the near term.

The company expects 2026 results in line with its forecasts and has identified steps to offset the higher construction costs linked to the war with Iran, which have weighed on the sector. Its private forward sales position rose to 2.15 billion pounds ($2.85 billion), up from 2.09 billion a year earlier.

why it matters

For markets, this is a sign that costs remain the main risk for UK homebuilders: even with rising sales, margins can come under pressure. Persimmon's shares and the sector as a whole are sensitive to material and labour costs.

market impact

Persimmon and UK homebuilders: higher costs squeeze margins in the near term

• ▼Persimmon shares pressure down — higher construction costs weigh on near-term profit

tags

instruments