Advertisement
Private equity has played a significant role in shaping Indi...
In today’s real estate landscape, fitness is often treated...
In this episode of Prop Personalities, we sit down with Hars...
Luxury real estate is one of the most talked-about segments ...
Welcome to Prop Personalities by Prop News Time - a podcast ...
Persimmon has indicated that rising energy prices are beginning to drive cost inflation across its supply chain, with potential impact extending into 2027. Despite this, the company has retained its 2026 home delivery guidance, supported by steady sales performance in the initial months of the year. The builder reported a 3 per cent rise in private sales per outlet, although buyer enquiries have softened amid higher mortgage rates. Its vertically integrated supply model has helped contain input cost pressures, even as broader sector sentiment remains cautious with peers moderating land investments and growth expectations.
Persimmon has warned that rising energy prices are beginning to feed into construction cost inflation, while maintaining its home delivery targets for 2026 following stable sales performance in the early part of the year. Advertisement
The UK-based housebuilder stated in the past week that early signs of supply chain inflation, driven by higher energy costs, could affect operations in the second half of 2026 and extend into 2027. Despite this, the company has retained its home completions guidance for the year, subject to stable market conditions.
Persimmon reported that its weekly net private sales per outlet, excluding bulk deals, rose 3 per cent to 0.67 during the year to date. However, it noted a moderation in buyer enquiries in recent weeks, reflecting the impact of rising mortgage rates on consumer sentiment.
The company indicated that its integrated supply model, which includes in-house production of key materials such as bricks, tiles and timber frames, has helped mitigate the impact of cost escalation compared to peers. This operational structure has provided greater control over input costs amid volatility in global energy markets.
In response to the evolving cost environment, Persimmon stated that it is reviewing its cost base and working closely with suppliers to manage inflationary pressures. The company also highlighted that it would adopt a more disciplined approach to land acquisitions, while continuing to invest selectively in new sites.
The broader UK housebuilding sector has shown signs of caution, with developers including Berkeley Group flagging slower profit growth and scaling back new land purchases. Similarly, Barratt Redrow and Taylor Wimpey have moderated land approvals in response to market conditions.
Persimmon expects its full-year pre-tax profit for 2026 to remain in line with market expectations of approximately GBP 462 million (USD 622 million equivalent). The company noted that while geopolitical developments and energy price volatility could influence costs and buyer confidence, there has been no material impact on trading so far.
Market analysts indicated that the company’s performance remains comparatively stable within the sector, supported by consistent sales and operational efficiencies. The update reflects a cautious but steady outlook, with cost management and disciplined investment emerging as key priorities for developers navigating a shifting economic environment.
Source - Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
