Company Reports

Persimmon is one of the UK’s largest homebuilders by revenue and dwelling completions, marketing homes under its three brands: Persimmon Homes, Charles Church, and Westbury Partnerships. Persimmon distinguishes itself from peers by operating in the lower-priced segment of the new-build market, targeting first-time buyers; Persimmon Homes' average selling price was 20% below the UK new-build national average in 2024. Charles Church is Persimmon’s premium brand, selling homes at average selling prices 50% above Persimmon Homes’. Westbury Partnerships develops affordable social housing that is sold to housing associations.

On Sept. 26, 2026, UK Prime Minister Andy Burnham announced Your First Home, a new equity loan scheme in England targeting first-time buyers. Listed UK homebuilders have been crying out for demand stimulus to replace Help-to-Buy, which closed to new applicants in 2022.

Persimmon reported 2026 first-half results with headline completions and average selling price ahead of our expectations. It now expects to deliver 12,500 completions in 2026—at the upper end of the previously guided range—and for profit before tax to be in line with consensus expectations.

We are moving to a price/tangible net asset value multiple-based terminal value for the UK homebuilders. This better reflects our view on the midcycle returns each company can generate and the realizable value of the landbanks.

Persimmon is one of the UK’s largest homebuilders by revenue and dwelling completions, marketing homes under its three brands: Persimmon Homes, Charles Church, and Westbury Partnerships. Persimmon distinguishes itself from peers by operating in the lower-priced segment of the new-build market, targeting first-time buyers; Persimmon Homes' average selling price was 20% below the UK new-build national average in 2024. Charles Church is Persimmon’s premium brand, selling homes at average selling prices 50% above Persimmon Homes’. Westbury Partnerships develops affordable social housing that is sold to housing associations.

Persimmon's trading update for the year to April 26, 2026. Net private sales rate grew 3% to 0.76, and private forward sales grew 7% to GBP 1.8 billion. Management cited uncertainty regarding build cost inflation but expects to achieve consensus completions and profit before tax for the full year.

Persimmon is one of the UK’s largest homebuilders by revenue and dwelling completions, marketing homes under its three brands: Persimmon Homes, Charles Church, and Westbury Partnerships. Persimmon distinguishes itself from peers by operating in the lower-priced segment of the new-build market, targeting first-time buyers; Persimmon Homes' average selling price was 20% below the UK new-build national average in 2024. Charles Church is Persimmon’s premium brand, selling homes at average selling prices 50% above Persimmon Homes’. Westbury Partnerships develops affordable social housing that is sold to housing associations.

Persimmon reported 2025 results ahead of our expectations across the board, including completions and average selling prices, surprising positively. Its initial guidance is for 12,000-12,500 completions in 2026, assuming stable market conditions.

Persimmon issued a trading update for calendar 2025. Headline completions and average selling price came in comfortably ahead of guidance and our estimates, while initial guidance for 2026 is set in line with our estimates.

Persimmon issued a trading update for the period from July 1 to date. Headline sales rates, forward sales, and average outlets all grew positively, and management commented that they expect to deliver fiscal 2025 in line with market expectations.

Persimmon reported half-year 2025 results, with adjusted operating margins coming in ahead of consensus expectations. All guidance for 2025 was reiterated, while the initial 2026 commentary suggests consensus operating margin will need to be trimmed.

Persimmon is one of the UK’s largest homebuilders by revenue and dwelling completions, marketing homes under its three brands: Persimmon Homes, Charles Church, and Westbury Partnerships. Persimmon distinguishes itself from peers by operating in the lower-priced segment of the new-build market, targeting first-time buyers; Persimmon Homes' average selling price was 20% below the UK new-build national average in 2024. Charles Church is Persimmon’s premium brand, selling homes at average selling prices 50% above Persimmon Homes’. Westbury Partnerships develops affordable social housing that is sold to housing associations.

We’re transferring coverage of Persimmon, one of the UK’s largest residential property developers, which is focused on the lower-value segment of the market.

The UK homebuilders have rallied between 16% and 25% in the last month. Lenders have recently lowered mortgage rates below the Bank of England’s 4.5% policy rate, anticipating multiple rate cuts in 2025, which has helped boost homebuilder shares.

Persimmon reported an encouraging trading update for the first four months of 2025. Echoing Taylor Wimpey’s commentary on April 30, sales rates have not shown any weakness despite heightened macro uncertainty at times in the period.

Persimmon's full-year results came in slightly above market expectations, building on the positive trading update in January. With 2025 guidance largely in line with our expectations, including completions guidance of 11,000-11,500 versus our 11,300 forecast, our fair value estimate and moat rating are unchanged.

Persimmon’s January 2025 trading update reaffirmed our optimism for the no-moat builder, with completions, earnings, and net cash all ahead of guidance. Persimmon’s weekly private sales for the year—a closely watched metric by investors—was 0.7 per active outlet, up from 0.58 in 2023. Improving sales activity is indicative of a cyclical recovery in the UK’s housing market. With no changes to our forecasts, we maintain our GBX 2,300 fair value estimate and view the shares as materially undervalued.

Persimmon’s third-quarter 2024 trading update affirmed that trading conditions continue to improve for the no-moat homebuilder in late 2024. Indeed, Persimmon’s weekly private home sales rate—a closely watched metric by investors—rose to 0.7 homes per active sales outlet in the third quarter, up 37% year on year. Improving sales activity for Persimmon reflects the cyclical recovery underway in the UK’s housing market—which is bouncing back from cyclical lows in 2023—and tracks broadly in line with recent improvements in sales activity reported by its homebuilder peers.

Persimmon is the UK’s second largest homebuilder, in terms of revenue and dwelling completions, operating under a speculative build model that is vertically integrated through the land development, construction, and sales and marketing segments of the value chain. Playing predominantly in the lower-priced segment of the newbuild market, about 50% of Persimmon’s private market sales are to first-homebuyers. Persimmon also has limited exposure to the premium end of the newbuild market via its Charles Church brand that markets higher-priced housing in more premium locations that are built to a higher specification standard.

Demand conditions for no-moat Persimmon continue to retrace in 2024 from their cyclical nadir a year ago, with recent sales activity instructive of housing market conditions that continue to normalize. Persimmon’s first-half weekly private home sales rate improved 5% year on year during the first half of 2024 to 0.59 homes per active sales outlet (excluding the impact of bulk sales). However, Persimmon’s weekly private home sales rate for the month of July 2024 strengthened 34% year on year (excluding bulk sales). Indeed, the marked improvement in sales activity during the typically quiet summer period points to reemergence of homebuyer confidence in the second half of 2024 and aligns with our expectations for cyclical earnings recovery from 2025 onward.