HOUSEBUILDER Persimmon yesterday said it expected the building and sale of 12,600 homes this year would earn it £2.3bn - an increase of eight per cent on last year.

Average selling prices for homes for the year were predicted to be £180,500.

The company, based in York, is about to take over rival Westbury for £643m early in the new year and this week announced it had bought Senator Homes, of Carlisle, in Cumbria, for £25m. These acquisitions, Persimmon said, would put it on track to build 16,700 houses next year.

Persimmon said sales were good in autumn, and that about £550m of sales would be carried forward into the new year.

The company said that controlling costs and increasing efficiencies had allowed it to achieve satisfactory operating margins for the second half of the year.

Analysts have predicted annual profits of about £495m and Persimmon yesterday said it expected a strong set of end-of-year results in line with expectations.

The company said it was well positioned to develop the business further next year.