The York-based firm has seen revenues rise 15% in the first half of the year

Housebuilder Persimmon said the UK’s housing market remains “challenging” despite seeing a significant rise in sales in the first half of the year.

The York-based firm completed 5,189 sales – up 13% from the same period last year – and said it was on course to complete 12,500 homes in 2026, at the top end of its previous guidance. Group revenues increased 15% to £1.73bn and profit before tax was 15% up at £168m.

Persimmon said that net private sales were up 6% in the five weeks to the end of June, but it added that open market sales have “softened slightly in recent weeks” due to tough conditions in the wider housing market. Average house prices on its properties rose 1% to £285,752.

Group chief executive Dean Finch 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.”

Persimmon said it had increased market share and was “well-placed to drive further growth through our unique set of capabilities”. The company, which also operates the Charles Church brand, is the UK’s fourth largest housebuilder by volume, though, in common with its rivals, it has seen the number of homes it has built fall in recent years due to challenges in the wider economy.