Persimmon says homes sales rising

The firm said the housing market was continuing to improve

The UK housing market is continuing to recover, the UK's largest home builder by volume, Persimmon, has said.

The York company said trading activity in the second half of 2009 continued to be better than a year earlier, with forward sales "well ahead" of 2008.

It added that prices had also "held firm", and it was increasing its investment in new developments.

Persimmon said while it was concerned about any rise in UK unemployment, its financial position remained strong.

Today's update appears to see the 'great escape' for the house building sector continuing Keith Bowman, Hargreaves Lansdown Stockbrokers See Persimmon's share price

Debt levels had been reduced, it said, and would be "significantly lower" than the £400m it had previously forecast for the end of the year.

The company also said it had seen "modest price growth in some regional markets".

Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said: "The contrast with the housing market of 2008 is palpable. Trading momentum continues to build, underwritten by government assistance introduced back in March.

"All in all, today's update appears to see the 'great escape' for the house building sector continuing. Even the hurdle of unemployment highlighted by management has witnessed an improving trend over recent months."