Persimmon, Vistry and Taylor Wimpey will all provide trading updates next week
Some of the UK’s leading housebuilders are set to reveal if there’s been a resurgence in property market demand following a lengthy downturn, as the Government gears up to revamp planning regulations.
London-listed construction giants Persimmon, Vistry and Taylor Wimpey will all be delivering trading updates next week. Persimmon, which is due to share its fourth-quarter trading update on Tuesday, recently reported an uptick in buyer interest since the first summer interest rate cut.
In November, the York-based homebuilder announced it was on track to finalise the sale of approximately 10,500 homes over 2024, surpassing the 9,922 recorded in 2023.
The company attributed this to improved customer sentiment driving demand for new homes, as lower borrowing costs have enhanced affordability among buyers. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, noted that Persimmon has “faced its fair share of struggles over recent years”, with sales volumes dropping more steeply than the wider sector.
“But early signs of promise are emerging in some forward-looking metrics,” he added. “And while sales rates and price increases are modest, they’ve bucked the sector’s declining trend of late.”
Mr Chiekrie mentioned that investors will be keen for an update on build cost inflation, which has begun to rise again recently, adding further strain on construction companies.
Persimmon also highlighted that it would be impacted by increased national insurance contributions from April, which it was seeking to offset.
UK homebuilder Taylor Wimpey also reported a stronger performance in its last investor update in November, stating it was on track to complete the sale of between 9,500 and 10,000 homes, which was at the “upper end” of its previous guidance. The FTSE 100-listed firm will provide its latest trading update on Thursday.
Taylor Wimpey also expressed support for the “Government’s focus on addressing the UK’s housing supply and unlocking the planning system”, which it expects to have a positive impact on land supply. The Labour Government has committed to building 1.5 million homes by the end of this Parliament, and last month announced a revamp of planning rules that will impose mandatory building targets for councils in England.
Mr Chiekrie stated that the pledge to simplify planning bureaucracy would be “favourable to Persimmon given its large land bank and low average selling prices”. Meanwhile, Vistry issued its third profit warning in three months in December, cautioning about delays to some deals and house completions into 2025.
However, it had a more optimistic outlook for this year, in which it says “more attractive options” for deals will become available. The group, which builds affordable housing and collaborates with local authorities and housing associations, has previously said it expects to play a significant role in the Government’s plans to build more homes.
Vistry will update investors on its recent financial performance on Wednesday.
