A HOUSEBUILDER’S sales have risen as the competitive mortgage market continues to provide fertile ground for growth.

Persimmon says greater numbers of people are visiting its sites and signing up for new homes.

The business, which has offices in Bowburn, near Durham City, says total forward sales revenue, including deals already done this year, stands at £2.56bn.

The figure is 11 per cent higher than the £2.31bn recorded a year ago, while bosses also confirmed they have welcomed six per cent more prospective buyers to its developments than they did 12 months ago.

According to the results, unveiled today (Thursday, April 27) at an annual general meeting at York Racecourse, the company’s weekly private sales rate is 12 per cent ahead of last year, meaning its sales rate is four per cent better off for the year-to-date.

To put that into context, Persimmon’s last annual results, for the year to December 31, showed sales stood at 15,171, with its average selling price higher at £206,765.

Nicholas Wrigley, chairman, said the business, which has its headquarters in York and further offices in Newcastle and Thornaby, near Stockton, was continuing to benefit from a stronger-than-expected economy and healthy mortgage market.

He said: “Our operational performance continues to be excellent.

“We are delivering higher volumes of newly-built homes across all regional markets, which is being supported by the resilience of the economy.

“The prevailing disciplined approach to mortgage lending is also enabling customers to buy homes on attractive but sustainable terms.”

Mr Wrigley added the builder, which has developments in Shildon, County Durham, and Pelton, near Chester-le-Street, has now opened 67 of its 90 planned sites for the first half of the year.

He said: “The board remains confident of future prospects.”

Earlier this year, The Northern Echo revealed Persimmon would continue investing in land to “get spades in the ground” and help the sector continue its recovery from the recession.

Mike Killoran, group finance director, said mortgage firm rivalry and Government Help to Buy schemes was helping the sector leave behind its “demoralised” downturn days.

However, he said much work remains to be done across the board to maintain the industry’s momentum, adding part of that rebound will come through Westminster support to help get developments through the planning process easier.

He told the Echo: “We have increased our sales volumes by more than 60 per cent over the last five years but we cannot do it on our own.

“The industry was really demoralised in the downturn; it takes time building that capability back.

“It is all about getting land through the planning regulations so we can get the spades in the ground.

“At the end of the day, that is why we are in business.”

The company has further developments in Shotton, near Peterlee, east Durham, and Colburn, near Catterick Garrison, North Yorkshire.