Housebuilder Persimmon bounces back with surging profit

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Visitor levels to its sites are are up 10% on last year with cancellations at historically low levels, echoing similar trends from rivals.

Chief executive Mike Farley said Persimmon had also seen signs of life outside more resilient markets in the South.

"We've seen demand improve right across the country, but 12 months ago it was much more southern-based," he added.

Average selling prices were up 5.7% last year to £167,249, with growth split between underlying price rises and a shift towards more profitable houses.

The firm posted forward sales of £848 million and expects to open another 70 sales sites this year.

Pre-tax profit surged to £95.5 million last year from just £7 million the year previously, although it remains well below the £600 million posted by Persimmon at the peak of the housing boom.

Farley also expects house prices to remain broadly flat this year barring a sudden revival in mortgage finance.

"Until that improves, we will find our market constrained," he warned.