Persimmon posts fall in H1 profit, sees improving market

Persimmon, the British house-builder, has said it had seen signs of improvement in the housing market, with sales prices stabilizing across the country.

The York-based Persimmon has posted a pre-tax profit of £9.8 million for the period of six months ended June 30, down from £36.9 million for the same quarter in the previous year.

The aforementioned figures include a positive reassessment on the value of its land. Excluding this the company's loss stood at £18.1 million.

However, Persimmon said that it had no plans to reserve any additional money for write-downs for the value of its land.

For the first half of 2009, the average selling price of homes was around £155,524, down from £181,485 for the same period last year.

Speaking on the prospects, the company said, "Future volume increases and price movements will be dependent upon mortgage availability, job prospects and the health of the general economy."

Although, economists are foreseeing British economy's return to growth in the current quarter, yet house-builders continue to be cautious on the outlook.