Housebuilder Persimmon said enquiry levels jumped 6 per cent during the first half of 2018 thanks to strong demand for family housing at affordable prices.
The York-based firm reported a 5 per cent rise in first half revenue to £1.84bn as new housing completions increased by 278 homes to 8,072 homes during the six months to June 30.
The average selling price rose by 1.2 per cent to £215,800, up from £213,262 in the first half of 2017.
Persimmon said it is focused on increasing its output of affordable family housing in locations where people want to live and work. It said consumer confidence remains resilient, boosted by attractive mortgage offers.
The group added that it has a strong platform to achieve further growth in the second half.
The firm said it will focus on building the new homes needed by communities right across the UK and it remains confident about future prospects.
Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Persimmon is still selling more houses at higher prices, but business is not booming like it was last year. Indeed the share price has fallen by more than 10 per cent in the last month as investors have lowered their expectations for the housebuilding sector."
Mr Khalaf said the UK housebuilding industry has been on a terrific run, fueled by low interest rates, rising property prices, and the Help to Buy scheme.
"But some of the wind is now being taken out of the housebuilders’ sails, as property price growth has slowed, and building costs have ticked up," he added.
"Interest rates still remain attractive for house buyers, and the Help to Buy scheme continues to provide critical support for transactions in the new build market. While the Government has committed to the scheme until 2021, share prices in the sector may come under pressure as we get nearer to that date, unless the deadline is extended.
"None of this adds up to a crisis for the housebuilders just yet, but the pickings may be slimmer from here on in."