UK shares have been on quite a tear over the last 12 months, with the FTSE 100 breaking through the 10,000 point mark and hitting fresh all‑time highs multiple times. Yet despite the headline strength, not every stock has joined the party.
Two of the biggest laggards are housebuilders Persimmon (LSE:PSN) and Vistry Group (LSE:VTY), which are down roughly 16.4% and 55.6% over the same period. Persimmon even started to stage a comeback in early 2026 before tumbling again in March.
So, what’s going on? Could these UK shares be gearing up for a stellar comeback, or are they value traps?
Why these builders are hurting
Both businesses have been battling the same brutal backdrop:
- Higher mortgage rates.
- Wobbly buyer confidence.
- Political uncertainty.
Despite what the share price suggests, Persimmon has actually been delivering some decent numbers.
Full‑year 2025 revenue jumped to about £3.8bn, driven by a 12% rise in completions to 11,905 homes and a 4% increase in average selling prices. Profits beat market expectations, and early 2026 sales rates and forward orders are ahead of last year.
The snag? Higher financing costs, a big step-up in land spending, and concerns that margins are still a shadow of what they were a decade ago have all kept sentiment in check.
Vistry has its own issues: 2025 adjusted profit before tax edged up to around £269m, but revenue slipped 4%, and completions fell 9% as the market conditions remained tough. In fact, management has warned that 2026 margins will be lower on the back of targeting price cuts to spark higher interest from home buyers.
That profit warning saw the shares slump. And with Vistry shares now trading close to a 52-week low, it’s clear investor confidence has taken a hit.
But are these all just short-term problems?
Could a rebound be brewing?
Persimmon’s latest guidance points to a 2026 completions range of 12,000–12,500 alongside further profit progress. Although this is dependent on what happens with the Iran conflict and its impact on interest rates, as well as inflation.
Nevertheless, forward sales are up, build cost inflation currently looks more stable, and there’s still a structural shortage of housing in the UK, creating a powerful long-term tailwind.
Vistry’s story is more about strategy. It’s pivoting hard towards partnerships and affordable housing, where it works with housing associations and the public sector on long-term schemes. That model typically offers better visibility and less cyclicality than pure private sales.
The 2025 results showed margins improving in the second half, net debt falling, and a record £4.5bn forward order book as of March 2026 with a big chunk of 2026 units already sold. As such, management expects revenue, volumes, and profit to grow this year, even if margins dip in the short term while incentives do their job.
Are these UK shares worth buying?
Personally, I think both of these housebuilders are fascinating options for patient investors.
Persimmon looks like a quality cyclical opportunity – a strong brand, hefty land bank, and improving sales, that’s currently being held back by interest rates and buyer confidence.
Vistry feels more like a higher‑risk, higher‑reward turnaround, with its partnerships strategy and battered share price offering more upside if management executes well.
However, for me, neither is a slam‑dunk today. So for now, they’re staying on my watchlist.
Should you invest £5,000 in Persimmon Plc right now?
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Zaven Boyrazian does not hold any positions in the companies mentioned.
