Housebuilding major Persimmon to assure investors over strength of margins

Persimmon is one of the biggest housebuilders in the UK with a string of completed projects and development schemes in Scotland. Picture: Kimberley Powell

Housebuilding giant Persimmon will this week look to assure investors that it can maintain solid margins amid mounting cost pressures.

The group – one of the biggest housebuilders in the UK with a string of completed projects and development schemes in Scotland – is due to release its half-year results, becoming the latest big name to do so.

Last week, rival Bellway revealed that its order book had grown to record levels, though the number of houses built by the group remains shy of pre-pandemic levels.

Despite strong demand, housebuilders face rising material and labour costs.

Steve Clayton, manager of HL Select Funds, said: “There is a lot to play for currently in the housebuilding sector and Persimmon is a bellwether name.

“Investors will want reassurance that the group can keep margins buoyant, even as cost pressures mount. Will customer demand still be strong as we get closer to the end of stamp duty exemptions?”

A message from the Editor:

Thank you for reading this article. We’re more reliant on your support than ever as the shift in consumer habits brought about by coronavirus impacts our advertisers. If you haven’t already, please consider supporting our trusted, fact-checked journalism by taking out a digital subscription: www.scotsman.com/subscriptions