Persimmon buoyed by strong demand for new homes

Persimmon, one of the UK's biggest house builders, says the snap general election called by Prime Minister Theresa May did not dent demand for new homes.

The company sold 7,794 new homes in the first six months of the year, 556 more than in the same period a year earlier, with average prices up 3.5% to £213,000 ($275,000).

It said performance in the first half had been "excellent", with customer demand remaining healthy and compelling mortgage rates continuing to offer support for new home buyers.

"We expect the group's strong trading through the first half of the year, including the contribution from 95 new sales outlets opened in the period, will lead to further good progress in our operating margin," Persimmon said in a trading statement.

Revenue increased by 12% from a year earlier to £1.66bn.

"Successful execution of the long term strategy launched in 2012 has placed the group in a very strong financial position, with an excellent asset platform designed to position Persimmon for success through the housing cycle," the company added.

"Our focus on building traditional family housing in attractive locations will help meet unfulfilled demand from first time buyers and home movers."

Persimmon will release detailed half-year results on 22 August.