Housebuilder says signs of rising build prices beginning to emerge in wake of last week’s announcement

Persimmon is “working closely” with its supply chain to manage costs after last week’s Budget, which saw taxes rise for many businesses.

In its Q3 trading update, the housebuilder said it remains “optimistic” about its growth prospects despite uncertainty around future interest rate changes, and that it continued to “assess the implications of the recent Budget”.

“We are seeing some signs of build cost inflation beginning to emerge in price negotiations for 2025 and are working closely with our supply chain to manage our costs, which will also be impacted by new building regulations and the employer national insurance increases announced in the recent Budget,” it said.

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Source: HM Treasury / Flickr

Rachel Reeves’ first Budget included tax rises for small businesses

Last week’s Budget saw the chancellor increase employers’ national insurance contributions by 1.2% to 15% from April 2025, and lift the national living wage by 6.7% to £12.21 an hour.

Persimmon said it would seek to mitigate the impact of cost increases through “robust commercial controls and other management actions”.

It also welcomed early announcements from the government around planning reform.

The trading update, which covers the period since 1 July, said the business was performing in line with expectations and was on track to grow its completions for the year to around 10,500, compared to 9,922 in 2023.

During the third quarter Persimmon delivered 1,416 homes including a 3% increase in private homes.

>> Read more: Labour’s first Budget gets mixed reaction as SMEs warn of tax rise hit

>> Read more: Autumn Budget 2024: key measures for construction at a glance

Dean Finch, group chief executive, said: “Positive momentum in the business continued over the summer months and we remain on track to deliver growth in completions to c.10,500 for the full year.

“Visitor numbers and enquiries remain strong and sales rates continue to be well ahead of the prior year. Our forward order book is up 17% on the prior year with the private average selling price robust.”

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