Persimmon 'vigilant' about housing market risks as profits grow 58pc

However, Persimmon gave no indication that it is expecting a slowdown. Since July 1 it has sold 5,500 new homes to private buyers, a 22pc increase on the same period last year. The company's average selling prices is also still growing, albeit at the slower rate of 3.2pc.

Nicholas Wrigley, chairman of Persimmon, said: "We anticipate that mortgage lenders will continue to actively develop their participation in the UK mortgage market over the medium term.

"A return to growth in monthly mortgage approvals in June this year, which was 14pc ahead of the prior year level, is encouraging.

"We welcome the continued discipline of mortgage lenders against the backdrop of the ongoing improvement in the UK's wider economic performance which is supporting increased confidence in our regional markets.

"Disciplined lending in support of a keen appetite to purchase newly built homes from both first time buyers and existing home owners provides the opportunity for the housebuilding industry to increase construction activity."

Persimmon said its profits grew from £133m to £209m. The rise in profits is helping the company to return cash to shareholders. On July 4, Persimmon paid out £214m, or 70p per share, as the recovery in the housing market leaves the housebuilder with a growing cash pile.

Mr Wrigley said: "The results for the first half of 2014 represent an excellent further step forward in achieving our strategic objectives.

"Whilst we remain vigilant about the continued challenges facing our markets emanating from events both at home and abroad I remain confident of Persimmon's continued successful development.

"This confidence is borne out of the dedication and commitment of all our employees across the UK and on behalf of the board I would like to thank all our staff for their contribution and achievements."

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