Should I buy Persimmon stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Persimmon for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Persimmon.

What is Persimmon?

How much is Persimmon stock?

The price of Persimmon stock is rising this week. The current share price stands at £1,225.00, up 1.20% over the last 24 hours and showing a robust weekly increase of 8.20%. Persimmon’s market capitalisation is now £4.21 billion, with a healthy average trading volume of 1,547,469 shares over the past three months. The stock’s P/E ratio is 14.76, offering a dividend yield of 4.63%, and it has a beta of 1.30. This combination of growth and attractive yield comes with moderate volatility, creating opportunities for both income-seeking and growth-focused investors.

Our full analysis on Persimmon stock

Having scrutinised Persimmon’s most recent financial statements, as well as its stock performance across the past three years, our analysis leverages a composite of financial ratios, technical indicators, peer benchmarking, and proprietary algorithms. The combined assessment aims to surface key drivers of value for this leading FTSE builder, positioning Persimmon within its competitive sector landscape for 2025. So, why might Persimmon stock once again become a strategic entry point into the UK residential development sector in 2025?

Recent performance and market context

Persimmon’s share price has demonstrated notable momentum in 2025, currently trading at £1,225.00, up 1.2% over the last 24 hours and delivering an impressive 8.2% weekly gain. This robust rebound is especially significant given the more challenging backdrop of the previous twelve months, where the shares had retraced following macroeconomic pressures. Behind the recent uptrend are clear positives: a resilient delivery of over 10,600 homes in 2024 (+7%), a 16% rise in revenue to £3.2bn, and company announcements of further upgrades to their forward orders (+27%). Sector context has improved, with the UK government maintaining strong support for residential construction through planning reforms, incentives for energy-efficient builds, and ongoing initiatives to support first-time buyers. In contrast to many cyclical businesses, Persimmon has actively benefitted from an easing rate hike environment and growing mortgage accessibility. This aligns with broader FTSE 350 real estate optimism, making Persimmon’s rebound look increasingly like the start of a new cycle.

Technical analysis

Technically, Persimmon is showing early-stage signs of a bullish reversal despite some short-term caution signals. The RSI (14 days) is at 39.61, near oversold territory, hinting that substantial downside has likely been absorbed by the market and positioning the stock for accumulation. The MACD, while currently negative (-21.00), appears to be flattening and may soon trigger a reversal given the speed of the recent price rally and increased buying interest around the £1,215–£1,225 support range. The 5-day moving average (£1,221.90) has crossed up through short-term resistance, suggesting early positive momentum, whereas the 20-day and longer-term averages are converging just above current price levels. Recent price action has seen Persimmon bounce decisively off major historical support around £1,210, reinforcing this level as a robust technical floor. If the shares sustain their break above the £1,236–£1,238 area, it could serve as a catalyst for renewed institutional flows, given this marks the next significant resistance. In summary, while the technical scorecard has been mixed, the evolving structure is increasingly favourable and justifies close monitoring of further upside signals.

Fundamental analysis

On fundamentals, Persimmon remains a compelling story of scale, profitability, and attractive valuation. The 2024 results comfortably beat analyst expectations: revenues rose 16% to £3.2bn and underlying operating profit grew by 14% to £405.2m, with operational margins steady at 14.1%. Earnings per share reached £0.83, reflecting both bottom-line resilience and prudent cost control despite ongoing inflationary pressures. With a price/earnings ratio of 14.76, Persimmon is trading at a significant discount to its longer-term sector averages and below many global peers, which is further underscored by its forward dividend yield of 4.63%. Strategic expansion is ongoing, with a targeted 5% increase in sales outlets (now at 270), a £1.55bn land investment programme over the next three years, and continued innovation through efficiency and customer satisfaction initiatives (including the highly rated “New Build Boost” scheme). Persimmon enjoys a dominant market position in affordable family homes, and its five-star HBF customer service rating confirms both brand strength and operational quality. These core strengths create a solid foundation and provide unique leverage as the housing market stabilises and resumes growth.

Volume and liquidity

Market confidence in Persimmon has been reflected in consistently high average trading volume, with over 1.54 million shares exchanged daily over the recent quarter. This sustained liquidity is a positive signal of both retail and institutional engagement, and supports dynamic price discovery. The company’s significant free float and broad FTSE 100 presence further facilitate seamless access for long-term and active traders alike. Such volume not only underpins defensive valuation but also implies rapid responsiveness to new information and earnings trends, reinforcing Persimmon’s position as a prime candidate during periods of sector-wide momentum.

Catalysts and positive outlook

• Structural housing shortage: The UK continues to face a chronic under-supply of new homes, with demand far outstripping supply, especially in the affordable segment where Persimmon leads.
• Government and regulatory support: Recent planning reforms and new incentives for both developers and buyers (especially first-timers and green homes) bolster volume prospects into 2026 and beyond.
• Normalising mortgage conditions: The expected 2025 reduction in interest rates, combined with mortgage accessibility programmes, is already supporting improved homebuyer sentiment.
• Operational leverage: Persimmon’s pipeline of over £1.15bn in forward orders (up 27% year-on-year) points to strong revenue visibility and potential outperformance if completions align with management targets.
• Dividend strength: With a 4.63% forward yield, regular dividends, and a history of cash returns, Persimmon is targeting both income-driven and growth-oriented portfolios.
• Sustainability and innovation: Notably, energy efficiency schemes and the rollout of customer-centric initiatives are helping Persimmon meet ESG criteria increasingly valued by institutional investors.
• Digital transformation and efficiency: Investment in land technology, sales digitisation, and modular construction show readiness to exploit new cycles of sector growth.

These elements combine to paint a profile of a business not just surviving the choppiness of 2023–2024, but actively positioning itself as a first mover for the next upcycle. Positive momentum across both traditional and alternative indicators strengthens the argument that the recent surge in share price is built on firm, sustainable ground.

Investment strategies

For short-term traders, Persimmon’s current consolidation above its technical support levels (£1,210–£1,225) appears to represent an ideal entry on temporary pullbacks, especially as market sentiment pivots on earnings releases or sector news. The clear uptrend in order intake and constructive volume patterns make sharp rallies likely in response to additional macro or regulatory surprises. Medium-term investors could look to accumulate on technical dips, particularly if the stock confirms a break above the £1,236–£1,238 resistance band, which may trigger trend-following flows. For long-term investors, the combination of attractive valuation, robust dividend policy, unmatched scale in the UK market, and an ambitious forward expansion plan all point to Persimmon’s strong capability to deliver both capital appreciation and reliable income, even as sector volatility endures. Those using tax-advantaged accounts (ISA/SIPP) will see further benefit from the stock’s eligibility.

Is it the right time to buy Persimmon?

The evidence strongly suggests that Persimmon is entering a new phase of structural outperformance after navigating a challenging sector reset. The share price rebound above £1,200, coupled with improved revenue, forward orders, and high customer ratings, underlines the company’s fundamental health. Technical support holds firm; volume is robust; and forward catalysts—including policy reform, mortgage trends, and strategic investments—support multiple avenues for further share appreciation. While no equity investment is risk-free, Persimmon’s unique positioning and favourable market dynamics appear to justify growing optimism among analysts and investors alike. Against this backdrop, Persimmon seems to represent an excellent opportunity for those seeking quality exposure to the UK housing market—offering a blend of growth, income, and resilience as the next bullish wave emerges.

Persimmon stands out as a fundamentally sound, technically promising stock at the heart of the UK’s residential construction upcycle, making it a persuasive addition to any forward-looking portfolio.

How to buy Persimmon stock in the UK?

Buying Persimmon shares online is simple, secure, and accessible through any FCA-regulated broker in the UK. You can purchase Persimmon stock directly in the spot market (owning shares outright) or use Contracts for Difference (CFDs) for leveraged, shorter-term trading. While cash buying suits long-term investors prioritising dividends and ownership, CFDs are chosen for tactical trading with higher risk and potential reward. If you’d like to compare brokers and their fees before making a decision, a comparison table is available further down the page.

Cash buying

When you buy Persimmon shares for cash, you become a direct shareholder and can benefit from dividends and any share price increase. Typical fees for a UK broker range from £3 to £10 per trade.

Gain scenario

If the Persimmon share price is £1,225.00, you can buy around 0.82 shares with a £1,000 stake, including a brokerage fee of £5.

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on the movement of Persimmon’s share price without owning the actual shares. Instead, you use margin and leverage (often from 2x to 5x) to amplify gains and losses. Fees typically include the market spread and overnight financing charges if you hold positions for more than a day.

CFD Gain Scenario with Leverage

You open a CFD position on Persimmon shares, with 5x leverage.
This gives you a market exposure of £5,000 for a £1,000 deposit.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +£400 gain, on a stake of £1,000 (excluding fees).

Final advice

Before investing, always compare the commissions, spreads, and terms offered by different brokers—this can significantly impact your return. The best way to buy Persimmon depends on your investment strategy, objectives, and risk appetite. You’ll find a full broker comparison table further down this page to help guide your choice.

Our 7 tips for buying Persimmon stock

The latest news about Persimmon

Persimmon stock outperformed the FTSE 100 this week with an 8.2% increase. This performance is driven by renewed investor confidence following the release of robust trading updates that confirm a substantial 17% rise in forward private sales, in line with the company’s expansion across 270 active outlets in the UK.

Latest financials reveal annual revenue up 16% and operating profit up 14% for 2024. Persimmon’s full-year results showed revenues reaching £3.2 billion and underlying operating profit at £405.2 million, surpassing analyst expectations and marking a solid improvement compared to 2023 figures.

Final dividend of 40p per share announced, payable to shareholders on 11 July 2025. This strong capital return illustrates the company’s commitment to shareholder remuneration, underpinned by resilient cash flow and an attractive forward yield of 4.63%.

Forward order book rises 27% year-on-year, reaching £1.15 billion. The significant growth in the order book highlights robust demand in the UK homebuilding market, which is further reinforced by government housing initiatives and improved mortgage affordability.

Analyst consensus price target has been revised up to £1,547.18, a 30% potential upside. This upward revision is supported by Persimmon’s ongoing strategic investment in land, its leadership in affordable housing, and a five-star customer satisfaction rating, positioning the firm for further local market growth.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.