Firm lifts outlook saying it’s well placed to benefit from PM’s focus on new homes despite ongoing cost pressures of Iran war
UK housebuilder Persimmon has lifted its outlook, saying it is “well-placed” to benefit from prime minister Andy Burnham’s policy agenda, despite growing costs linked to the Iran war.
Despite rising cost pressures, Persimmon has lifted its outlook for the full year and now plans to complete 12,500 new homes by year-end, at the upper reach of its previous guidance.
The housebuilder is now hoping to benefit from Burnham’s policy programme, including plans to boost housing and slash costs for cash-strapped consumers.
“Persimmon remains well-placed to drive further growth through our unique set of capabilities,” the company said.
“The UK housing market continues to experience both a long-term undersupply of housing and affordability challenges for new homeowners, which is a key focus for the new government.
“As the most cost-efficient national housebuilder, with a clear focus on customer value and affordability, a growing land pipeline and expanding outlet network, we are well-placed to respond.”
The FTSE 100 builder told investors on Thursday that pre-tax profits were already up by 15% for the first six months of the year to £168m, after a 13% rise in the number of homes built over the same period.
That was despite “challenging” market conditions, given the rise in building costs, and with many consumers still struggling to afford homes.
Bosses added that cost pressures were likely to grow in coming months. “We expect additional inflationary pressure in 2027 including as a result of the conflict in the Middle East,” Persimmon said in a market update.
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However, the housebuilder warned that even its own focus on low costs, and efforts to make the business more efficient, might not be enough to fully offset inflation.
“We have taken additional management actions to secure further cost savings, including identifying procurement savings, specification optimisation, house-type design, overhead savings and operational efficiencies,” the company added.
Source: Guardian - World News
