Persimmon Faces Rising Costs Amid Budget Changes and Falling Home Sales

The UK housebuilder warns of cost inflation and national insurance hikes impacting its operations despite steady demand and forward sales growth.

Persimmon reports a decrease in home sales from 1,439 to 1,416 between July and November compared to the previous year.
The company is concerned about rising build cost inflation and new building regulations affecting future price negotiations.
Recent Budget measures, including increased national insurance contributions for employers, are expected to raise operational costs.
Despite these challenges, Persimmon remains on track to meet its full-year target of approximately 10,500 home completions.
Forward sales have increased by 40% to £1.45 billion, reflecting more stable market conditions and improved buyer sentiment.