Persimmon leaps on home loans fillip

The City built up shares in Persimmon on Tuesday after the housebuilder revealed strong first-half results, boosted by a competitive mortgage market.

The bullish residential developer defied a broader housing market slowdown since the Brexit vote, and posted a 12% revenue jump to nearly £1.7 billion. Chief executive Jeff Fairburn said the firm benefited from buyers being “able to borrow at pretty competitive rates”.

He added that problems created by a potential squeeze on buyers from higher inflation were being mitigated by healthy employment levels and a competitive mortgage market. Persimmon built 8% more homes than last year, bringing the total to 7794.

Average selling prices increased by 4% to £213,262, and pre-tax profit soared 30% to £457.4 million.

Although the company said it would be prudent about buying land for future homes, it stressed that the “market remains confident”.

Persimmon shares rose 69.91p, or 2.74%, to 2626p as the results beat City forecasts.