Persimmon, the FTSE 100 housebuilder, expects to meet City forecasts for 2026 but warned that rising costs will limit profit growth next year.
Analysts expect the York-based company to build 12,472 homes this year and make an underlying pre-tax profit of £455.7 million.
Their forecasts for 2027 point to 12,792 homes and a pre-tax profit of £460.5 million.
Persimmon said inflation would add £30 million to £40 million to its costs next year, which, together with higher financing costs, would restrict near-term profit growth.
It has already found savings that should largely offset these pressures by 2028.
Chief executive Dean Finch said the company had increased sales and planning approvals while the wider housebuilding sector was in decline.
Sales hold up
Private forward sales rose 3% to £2.15 billion, and the company remains on track to build around 12,500 homes this year.
Net private sales per outlet per week rose 4% to 0.79 between 1 July and 1 November.
The average selling price in the private order book rose 2% to around £301,900.
Incentives, such as help with deposits or moving costs, averaged around 5% of the price, the same as in the first half.
Planning approvals rose 12% to 8,722 plots in the nine months to 30 September.
Persimmon has opened 57 new sales sites this year and expects to reach around 100 by the end of December.
First-time buyer scheme
Persimmon expects market conditions to stay tough next year because of affordability pressures, higher borrowing costs and uncertainty over build costs caused by the conflict in the Middle East.
It welcomed the government's proposed Your First Home scheme to help first-time buyers.
First-time buyers account for around 35% of Persimmon's private sales.
The company said it was too early to judge how the scheme would affect 2027, as it has not yet formally launched.
