HOUSEBUILDER Persimmon has reported a surge in profits and said that demand has held up following Britain's decision to leave the European Union.

The company, which has offices in Bowburn, near Durham City, said pre-tax profits rose 29 per cent to £352.3m for the first half of the year, while revenues increased 12 per cent to £1.49bn.

Persimmon's chief executive Jeff Fairburn said that, despite increased uncertainty, customer interest since the vote has been "robust".

He said: "While the result of the EU referendum has created increased economic uncertainty, customer interest since then has been robust with visitor numbers to our sites around 20 per cent ahead year on year.

"Our private sale reservation rate since July 1 is currently 17 per cent ahead of the same period last year. The group is now trading through the traditionally slower summer weeks but customer demand remains encouraging and we anticipate a good autumn sales season."

Persimmon and its listed rivals saw shares surge after the Bank of England slashed interest rates to 0.25 per cent from 0.5 per cent and unveiled a package of measures worth up to £170bn.

With more rate cuts likely before the end of the year, housebuilders are seen as being among the biggest beneficiaries of the Bank's economic recovery plan.

However, Persimmon added that it will "remain cautious" with respect to new land investment in the face of uncertainty created by the vote.

"After a modest increase in the week following the referendum result, cancellations have returned to normal levels and are currently running slightly lower than the same period last year.

"The overall shortage of supply of housing in the UK may provide a degree of support to the housing market ... Action taken by the Government to adjust policy to support UK economic performance may provide further mitigation as might any response with respect to interest rates by the Bank of England," the company said.

The firm, which has its headquarters in York and further offices in Newcastle and Thornaby, near Stockton, said completions increased 6 per cent to 7,238 new homes sold, with the average selling price also rising 6 per cent to £205,762.

Persimmon added that, with the cost of mortgage funding "remaining at compelling levels", supported by a competitive lending market, the housing market "across our regions remains confident".