HOUSEBUILDER Persimmon forecast results for the first half of the year would show a rise in sales of at least 20 per cent over last year against a steady market backdrop.

The firm, which acquired the Merewood group for £22.6m earlier this month, said sales since last summer had returned to normal levels.

Updating shareholders ahead of its interim results due out in August, Persimmon said: "Based upon our expectations of a continuation of stable market conditions and with total sales achieved for 2003 ahead of last year, at over £1.4bn, we look forward with confidence to achieving further growth in 2003."

House prices have continued to grow across all Persimmon's regions, except in London.

The group said further evidence of continuing good demand had been confirmed by the higher number of visitors to its show homes in recent weeks.