The group thrived on ‘firm customer demand’ in H1 and expects the growth in mortgage lending to continue.
The statement said: “After retreating a little through the second half of 2014 mortgage approvals for house purchase in June of 66,582 were c. 2% higher than in June 2014. We believe that the combination of appropriate lending regulation, a measured approach to the assessment of customer credit worthiness and the pursuit of balanced oversight measures by the Bank of England will support the sustainability of the housing market over the longer term.”
It continued: “We anticipate a good autumn selling season after the summer holiday period draws to a close in early September.”
The builder’s revenue grew 11% to £1.33bn, against £1.2bn in 2014 after it sold 6,855 new homes over the period.
Investment in land banks continues with 11,539 plots of land secured in the period bringing its total to 92,404 with planning consent.
Jeff Fairburn, group chief executive, said: “Persimmon has traded well in the first half of 2015. The group continues to take advantage of the current market opportunities to deliver sustainable growth while also utilising its excellent cash generation to build a strong asset platform for the future.”
The firm suggested stronger employment in the UK and the improvement in real disposable income over the last twelve months is helping to support and improve customer confidence.
Today, the Office of National Statistics reported that average new-build growth is more than twice that of second-hand properties so far this year. Prices paid for new build homes increased by an average of 9.5% during the year to June 2015, against 5.4% for pre-owned, according to the data.
Yesterday, Bovis Homes Group reported over 1,500 home completions in the first half but has ambitions to scale up to 6,000 homes a year in the medium term.
