Persimmon PLC (LSE:PSN), the FTSE 100 housebuilder, has warned of emerging supply chain inflation driven by the ongoing conflict in Iran, cautioning that higher energy costs are likely to weigh on second-half margins even as the group reported a solid start to 2026.
In a trading update, the York-based group said there are early signs of increased inflationary pressure in its supply chain, which it attributed to higher energy costs linked to geopolitical uncertainty, with the impact expected to be felt in the second half of 2026 and into 2027.
The company said it is seeking to mitigate cost pressures through its relationships with suppliers and subcontractors and through its vertically integrated low-cost model, and is also reviewing internal costs to improve efficiency.
While Persimmon said the conflict has not had any material impact on trading to date, chief executive Dean Finch acknowledged that consumer confidence and affordability could yet be affected, noting that mortgage rates have edged higher since early March and that enquiries have softened slightly in recent weeks.
The cautionary note on inflation carries potential industry-wide implications, given that energy-driven cost increases in materials and labour tend to affect housebuilders broadly, and Persimmon's scale and supply chain visibility make its early warning signals closely watched across the sector.
The warning came alongside an otherwise encouraging trading update for the period to 26 April 2026, in which private forward sales rose 7% year on year to £1.80 billion, supported by a 5% increase in the private average selling price to approximately £306,900.
Total forward sales, including year-to-date legal completions, advanced 5% to £2.46 billion.
Net private sales per outlet per week, excluding bulk sales, improved to 0.67 from 0.65 a year earlier, with the group operating from an average of 273 outlets, up from 268 a year ago.
Persimmon said overall pricing on reservations remains robust, with total incentives continuing to run at around 4% to 5% on average.
The group said its land bank remains strong, with approximately 84,900 plots owned or under control at 31 March, up 1% on the prior year, and 3,080 plots achieving detailed or reserved matters planning approval in the first quarter, compared with 2,781 in the same period last year.
Finch said the investment made in the business in recent years, across its three brands, vertical integration capabilities and landbank, positions the group well for medium-term growth, and that interactions with institutional customers in the affordable housing and build-to-rent sectors remain positive, with 19 new partners added over the past 12 months.
Assuming market conditions do not materially deteriorate, Persimmon said it anticipates delivering profit before tax in line with consensus and completions of between 12,000 and 12,500 homes in 2026, with over half of private homes and almost all housing association homes for the year already secured.