UK Housing Market Shows Resilience Amid Geopolitical Uncertainty

Persimmon, one of the UK’s largest housebuilders, has reported strong demand for new homes despite ongoing geopolitical uncertainties. The company revealed that it has not seen any material impact from global trade wars or heightened macroeconomic challenges on its supply chains or sales activity.

The firm, founded in 1972 and listed on the London Stock Exchange since 1985, has experienced a promising start to the year. By early 2025, Persimmon was selling an average of 0.65 homes per week across its 275 active sites, representing a 3% increase compared to the same period in 2024. This surge in sales reflects growing buyer confidence, supported by falling mortgage rates and improved wage growth, which have bolstered affordability.

Persimmon has also observed a notable rise in its prices. The average selling price of its homes is currently up by 4% year-on-year, reaching £293,300. This has contributed to the company expanding its order book to £1.68 billion, an increase of £250 million compared to the previous year. The growth is further supported by the addition of new projects, as the group is now operating on more sites than a year ago.

Despite the challenging economic backdrop, Persimmon has reduced its reliance on customer incentives, such as free carpets or stamp duty contributions. These incentives, which previously accounted for around 5% of the headline sale price, have now decreased to approximately 4%, reflecting heightened demand and robust market conditions.

The results underscore the resilience of the UK housing market, with the company expressing confidence in delivering between 11,000 and 11,500 completions by the end of the year, provided market stability continues. Chief Executive Dean Finch stated that customer confidence remains strong across the country, further emphasising the steady recovery in property transactions that had stagnated in prior years.

Economists predict the UK economy could face slower growth due to international trade tensions. However, this scenario may prompt the Bank of England to cut interest rates more aggressively, a move likely to provide further support to housebuilders like Persimmon. The company remains optimistic about navigating the broader economic challenges while continuing to benefit from sustained buyer interest and favourable market dynamics.