Persimmon sales on the rebound

BRITAIN'S biggest housebuilder lent its weight to growing sentiment in the industry that the market is showing signs of life after a slow seven months.

Signalling sales over the first weeks of 2005 back to the same levels as the start of 2004, Persimmon chief executive John White's market assessment contrasts sharply with banking industry figures showing mortgage approvals for house purchases in January plummeted to a six-year low.

But White said: 'There must be a time lag with those figures relating to the autumn market. The market has been bubbling for the past eight weeks.'

His views echo those of rival big three builder Wimpey which last week indicated early signs of renewed sales activity this year. Like Wimpey, Persimmon has 15% more sales outlets open than a year ago which helped cope with slower sales between last May and December.

The extra sites should see volumes rise around 5% in 2005 after completing on 12,360 homes in 2004, up from 12,163 the year before.

Pre-tax profits for the year to 31 December rose 33% to £470m, at the top end of analysts' expectations, on turnover of £2.13bn, up from £1.88bn. The full-year dividend is lifted 50% to 27.5p.