Persimmon reports rise in house sales

Persimmon, the UK's largest housebuilder by market value, said legal completions in the first half increased by 16 per cent to 4,657 homes year-on-year, with the average selling price rising by 8 per cent to 168,500.

"Whilst sales prices and margins have continued to increase from the beginning of the year, since early May we have experienced the normal seasonal slow down in private sale reservations," said the group in a statement.

The company said sales had been affected by uncertainty prior to the Government's emergency budget on June 22 but had been in line with its expectations since then.

Rival builder Taylor Wimpey said last week that sales had picked up since a drop-off around the election in May.

However, house price growth has tailed off in recent months. British house prices rose by just 0.1 per cent in June, according to Nationwide Building Society, while lender Halifax reported a drop in prices in May.

Consumer confidence has also dipped, falling for the fourth month in a row in June over concerns about the fragility of the economy and the potential for a double dip recession.

Persimmon said total sales so far this year stand at 1.5bn, up from 1.3bn last year