Government’s new homes target is foundation for housebuilders’ optimism

Housebuilders Persimmon and MJ Gleeson have good foundations in place after building up momentum last year.
The sector has been buoyed by the Government’s target of building 1.5m homes.
Updates by the two Yorkshire-based groups showed an increase in completions, which is underpinning optimism for 2025.
Dean Finch, Persimmon
Persimmon’s chief executive Dean Finch said: “We performed well through 2024 delivering 7% growth in completions, ahead of market expectations.
“Persimmon has worked hard and is well positioned for the future, supported by the land and planning investment we have made in recent years, our vertical integration capabilities and our excellent teams.
“This investment, coupled with the government’s ambitious planning reforms which demand more of the high-quality, affordable homes which are Persimmon’s core strength, supports our growth ambitions in the medium-term.”
Persimmon delivered 10,664 homes in the year as completions increased by 7%, while “improving market conditions” and the mix of houses being built moved the average selling price up 5% to £268,500.
Low-cost housebuilder MJ Gleeson has reported it expects the group’s results for the year will be ahead of last year and in line with forecasts.
In the six months to December, it increased completions by 4% to 801 homes.
Graham Prothero, chief executive of MJ Gleeson, said: “We are pleased to have delivered an encouraging performance during the first half, with Gleeson Homes increasing its completions compared to the first half last year.”