HOUSEBUILDER Persimmon sounded a positive note about future prospects yesterday as it unveiled a seven per cent rise in first half profits to a record £235m.

York-based Persimmon said it was well-placed for the full year with sales of £980m already booked for its second half - similar to last year's level.

Although the slower housing market has led some of its rivals to warn of lower volumes and margin erosion, Persimmon said its wide geographic spread and range of house types helped protect it against the downturn.

Neil Foster - managing director of Persimmon Homes' Teesside division, said: "Although the market has been more subdued over the last six months, the recent interest rate reduction and a return in confidence in the housing market has seen an increase in visitor levels and reservations throughout the region.

"Against this background I am very confident that Teesside will continue to play an important role in the future profitability and growth of the Persimmon group."

Vinay Bedi, director and fund manager at Wise Speke's Newcastle office, said: "Persimmon more than met our expectations in conditions that have clearly been difficult within the UK."