The FTSE 100 housebuilder completed 5,189 homes in the six months to the end of June, a 13% increase on the same period last year. Underlying operating profit rose 10% to £189 million, with housing revenue up 13% to £1.48 billion. Pre-tax profit climbed 15% to £168m on revenue of £1.73bn, while average sales prices edged up 1% to £285,752.

Growth was spread across Persimmon’s three brands. Charles Church, its premium label, saw completions jump 25% to 555 homes, while deliveries to housing associations through strategic partnerships rose 50% to 928 units. The company’s net private sales rate for the half improved to 0.75 per outlet per week, up from 0.70 a year earlier.

Underlying operating margin slipped slightly, from 13.1% to 12.8%, as the business continued working through lower-margin legacy sites.

Investors responded positively: shares rose 2.9%, or 32½p, to close at £11.55½ on the day of the results.

Persimmon said it remains on track to deliver around 12,500 completions for the full year, the upper end of its previous guidance, with underlying pre-tax profit in line with market expectations. Chief executive Dean Finch said the first-half performance reflected the strength of the company’s established strategy, product mix and geographic footprint, together with its lower-cost operating model and continued investment in the business.

The group’s private forward order book has grown 5% year-on-year to £1.31bn, with an average private selling price of around £302,000. Persimmon said it is roughly 80% secured on private completions and fully secured on housing association completions for the year.

Despite the strong first-half numbers, Persimmon flagged a slowdown in buyer activity since the period ended. In the five weeks since 30 June, the net private sales rate rose 6% year-on-year to 0.72, but excluding bulk deals, sales rates actually fell to 0.59, below the 0.61 recorded a year earlier. The company said enquiries weakened in July and that open market sales had softened slightly in recent weeks.

Commentators have linked the broader slowdown to a mix of factors, including higher mortgage rates and weaker consumer confidence following the outbreak of conflict in Iran, alongside seasonal distractions such as the World Cup, a summer heatwave and a change of prime minister. In response, Persimmon has launched a summer marketing campaign and remains on track to open around 100 new outlets this year.

Looking further ahead, Persimmon warned that build cost inflation, running at an estimated 3-4% this year, could add between £40m and £50m to costs over the next 18 months, partly as a result of global trade frictions and the conflict in the Middle East. Finch cautioned that external build cost inflation is expected to create margin pressure into 2027.

The company said management actions already under way, including procurement savings, specification optimisation, house-type redesigns, overhead reductions and site efficiencies, should offset at least half of the anticipated increase, though a review under way could also lead to restructuring costs later this year.

Dean Finch, group chief executive, said: “Persimmon delivered a strong first half performance, growing our market share, increasing completions by 13% and underlying operating profit by 10%. In a challenging market, this performance demonstrates the strength of our established strategy, product mix and geographic footprint, alongside the benefits of our lower cost operating model, sustained investment in the business and ongoing commitment to self-help.

“We remain on track to deliver growth in 2026 in line with market expectations. I want to thank all my colleagues and our supply chain for their continued hard work in delivering this result.

“Market conditions remain challenging, with affordability constraints and build cost pressures affecting the sector. We have responded quickly, taking clear management action focusing on driving operational efficiencies throughout the business. Our disciplined land buying, industry-leading cost efficiency and vertically integrated operating platform give us important structural advantages as we seek to mitigate cost pressures and support growth.

“Persimmon’s strategy is delivering growth. Having significantly invested in our strategy over recent years, our focus is increasingly on converting those investments into improving returns. Our disciplined land investment at better margins, outlet growth, stronger brands and increasingly differentiated operating platform position us to progressively deliver higher volumes, stronger cash-generation and improving returns over time.”