UK housebuilder Persimmon has decided that the future looks positively peachy, lifting its full-year outlook and crediting Prime Minister Andy Burnham's policy agenda for a potential 'bounce' - even as the Iran war threatens to inflate costs like a poorly insulated home.

The FTSE 100 company now plans to complete 12,500 new homes by year-end, landing at the upper end of its previous guidance, because nothing says 'optimism' like building more houses while costs climb. Burnham's plans to boost housing and slash costs for cash-strapped consumers have Persimmon feeling 'well-placed' to drive growth, though one might argue the company's 'unique set of capabilities' includes a knack for stating the obvious: the UK has a housing shortage and homes are unaffordable.

Persimmon's first-half pre-tax profits rose 15% to £168 million, with a 13% increase in homes built, despite 'challenging' market conditions. But the company warns that inflationary pressures - including those from the Middle East conflict - are expected to intensify in 2027. To combat this, Persimmon is taking 'additional management actions' like procurement savings and specification optimisation, which sounds a lot like rearranging deck chairs on the Titanic, but with more spreadsheets.

Meanwhile, S&P Global data from Thursday shows UK construction sector optimism rose last month, thanks to 'hopes of a rebound in domestic economic conditions' and 'signs of an improved near-term outlook for customer demand.' Because nothing lifts a builder's spirits like the possibility of a customer who can actually afford to buy.