Persimmon PLC (LSE:PSN) shares rose 3% to 1,270p after the housebuilder reported steady trading momentum in the past quarter, despite some softening in the wider market.
A private sales rate of 0.63 per outlet per week was reported for the quarter to 30 September, excluding bulk sales, up 3% year on year.
Total weekly sales increased 14% to 208, supported by an expanded outlet base and broad UK coverage.
The company said: “This progress has been achieved despite some softening in the market since the summer, with consumer confidence affected by ongoing uncertainties including the upcoming government budget.”
Persimmon expects to deliver full-year results in line with market expectations, projecting year-end net cash between £0 million and £200 million. The City consensus is for £103 million of cash, down from £259 million at the end of 2024.
Management noted that the business is “well positioned” to build margins and returns over the medium term, even amid affordability pressures.
Analysts at Stifel said Persimmon was still their “top pick”, citing its focus on the north of England and first-time buyers, as well as limited fire safety remediation exposure.
They forecast 2025 pre-tax profit of about £430 million, up 8% on 2024, supported by easing mortgage rates and resilient housing demand, while the average City forecast is for £429 million.
"Housebuilders' sales rates are likely holding up better than feared because amid the Budget gloom, mortgage rates have been falling, from 4.5% in May to 4.2% by September.
"Banks have also been relaxing lending criteria with the government's encouragement."
The Stifel team notes that both Persimmon's and the sector's current valuations are unusually low and "not normally seen outside of recessions", so beleive the sector is "well set for a re-rating as strong housing fundamentals eventually outweigh the weak confidence of house buyers and investors, with the Budget potentially a clearing event (though this remains uncertain)".