housebuilder Persimmon remained confident about the housing market yesterday after reporting an "excellent" forward order book for the year.

The builder, based in York, said trade had continued strongly since its last update, despite warnings of a slowdown in the property market and fears of further interest rate rises.

In a trading update, the company said the Bank of England's decision to increase interest rates to 4.25 per cent earlier this month would ensure the market was sustainable.

The company, one of the UK's largest housebuilders, revealed the number of forward home sales was 17 per cent ahead of last year, while the average selling price rose 12 per cent to £169,000.

Revenues from forward sales were up 30 per cent on the same time a year ago.

Speaking at a site visit in the North-East, chief executive John White said the business was also ready to make acquisitions.

He said: "Persimmon is in excellent shape. Trading continues to be strong and we have ample scope for further organic growth and to make acquisitions, should the right opportunity emerge."

The builder bought rival builder Beazer for £559m three years ago, along with the company's upmarket Charles Church brand.

Since the acquisition, Persimmon has seen revenues steadily rise - culminating last year in a record profit of £352.5m.

The group has been targeting growth areas and recently opened an additional office in Teesside. Persimmon is also building 25 per cent more sites under the Charles Church brand than at the same time last year.