HOUSEBUILDER Persimmon yesterday sought to reassure investors by praising the resilience of the property market - despite selling fewer homes than a year ago.

York-based Persimmon said the caution shown by buyers this year had not translated into a sharp drop-off in visitors to its developments, with reservations in line with normal market conditions.

But analysts fear housebuilders are resorting to offers to bump up volumes at the expense of margins.

Speaking at the annual meeting of the company in York, chairman Duncan Davidson said sales since the start of March had been good, although slightly lower than a year earlier.

Revenues are on a par with 2004 at £1.4bn. Mr Davidson said: "We therefore remain confident of achieving our half-year expectations."

Persimmon, which last year achieved the highest pre-tax profits recorded by a UK building firm, is selling from 15 per cent more outlets than a year ago in an effort to maintain sales volumes.

Mr Davidson also moved to calm fears that the group was flaunting corporate governance rules by appointing chief executive John White as his successor as chairman.

The move goes against the recommendations of the Higgs Review of best boardroom practice in 2003, although there remained scope for a chief executive to take the chair in "exceptional circumstances".

Major shareholders had been consulted and were supportive of the move by Mr White, who will take on the new role in 12 months' time after a dozen years as Persimmon boss, he said.

Mr Davidson said: "The board considers that the company and its shareholders would benefit from his continuing involvement with the group. Since he took over as chief executive, group profit before tax has risen from £10.2m to £470.4m."