Persimmon say interest rate rises are working

Persimmon, Britain's biggest house builder, said this morning that recent interest rates rises have succeeded in slowing the housing market, without dampening consumer confidence.

The Bank of England has increased borrowing rates four times since August in an attempt to control price inflation. The house builder commented: "Recent interest rate rises have had the desired effect and the housing market is stable with only moderate price growth. Employment prospects and customer confidence remain good, and as a result the market has continued to be resilient."

Updating the market on its first-half progress, Persimmon said it has improved its profit margins since the £643m acquisition of Westbury last year. The York-based company noted that total sales in the first half were £1.5billion and forward sales for the second half of the year were likely to reach £950m, up from £882m last year.

In a statement released to the stock exchange, it said: "We have a strong forward order book, an increasing number of outlets coming on stream, an excellent land bank including significant strategic land holdings, and an experienced and focused management team."