Persimmon takes Brexit barometer role

Half-year results from housebuilder Persimmon will be in the spotlight next week when it gives an update on Britain’s property market in light of Brexit.

Persimmon, which has a number of developments in Scotland including Tayside and Fife, is set to post a half-year profits surge tomorrow.

The group revealed robust home sales in a first-half update last month and said there would still be “good opportunities” in the property market in the wake of Brexit.

Results from Persimmon, the UK’s biggest housebuilder by volume, will also be scoured for comment on buyer demand and any signs of a pick-up following the Bank of England’s rate cut.

Persimmon and its rivals saw shares surge after the bank slashed rates to 0.25% and unveiled a package of economic measures worth £170 billion.

Persimmon’s shares have rallied by around 30% since July on the better-than-feared outlook, although they still remain below pre-referendum levels.

Analysts at Whitman Howard are expecting an impressive set of results, pencilling in a 27.9% surge in pre-tax profits to £349 million.

This comes after Persimmon said it sold 6% more homes in the first six months of 2016 than in the same period last year.

The total number of home sales came in at 7,238, with the average price up 6% at around £205,500.

The City will scrutinise half-year results for Persimmon.