Persimmon reports encouraging sales

The UK’s largest housebuilder by market value said full-year underlying pre-tax profit surged to £95.5m from £7m the year previously.

Market expectations had ranged between £84m and £98m.

Persimmon said sales since the beginning of the year had been encouraging, with higher visitor levels.

This echoed comments from rival Barratt and Redrow who both noted a strong uptake in sales since the start of the year in recent results statements.

A positive start to the year, and buoyant spring selling season, would come as a relief to the sector after a weak autumn trading period, which was further exacerbated by bad weather in December.

But economists are predicting another tough year for the housebuilders with muted growth at best, with economic uncertainty and a struggle to access credit deterring buyers from entering the market.

In January, Persimmon said completions rose 4.5 per cent in 2010 to 9,384 homes, while prices nudged up 6 per cent to £167,000.