Housebuilder Persimmon (PSN.L) said it has sold more homes this year but warned that still-high mortgage rates and rising household costs were making it less affordable for buyers.

The York-based developer told investors that it was on track to meet its yearly sales target despite tough conditions in the housing market.

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It completed the sale of 4,605 homes in the first half of 2025, 4% more than the same period last year.

The average sale price of a home jumped by 8% to about £284,000.

Persimmon is expecting to complete the sale of between 11,000 and 11,500 homes this year, and around 12,000 in 2026.

Forward sales, meaning homes ordered but not yet bought, were up 9% on the prior year, the company revealed.

Chief executive Dean Finch said he was “pleased that we have continued to grow in the first half of the year despite challenging market conditions and with affordability still an important constraint”.

This was particularly affecting first-time buyers, who represented about a third of the group’s private sales this year.

Mortgage rates have reduced since the Bank of England has been lowering its base level over the past year, but they remain at “levels that still present a barrier to many potential customers”, the builder cautioned.

Furthermore, a raft of rising household costs, including council tax, stamp duty, and energy bills – have weakened affordability for many.

Persimmon said the prices of its homes were lower than its biggest rivals and it had improved its range of affordable homeownership options like shared equity.

It also highlighted “positive developments” in the market this year including pay rises helping improve affordability for some buyers, and the easing of some mortgage lending rules.