Housebuilder Persimmon pledged to step up construction of new homes to meet soaring buyer demand after government schemes helped half-year profits jump 40%.
The group which has 34 development sites across Scotland and which is progressing plans for a potential £14 million project in Dundee’s Dalrymple Street said more than 1,700 reservations had been made under Help to Buy since the scheme was launched in April.
Underlying pre-tax profits for the first half of the year jumped to £135.3m from £96.9m a year earlier, with legal completions rising 7% and forward sales rising by more than a fifth.
York-based Persimmon said it expected demand from home buyers to continue picking up over the coming weeks and months as the housing market recovery gathered pace.
It vowed to increase home building activity, with plans to open another 85 sites by the end of the year, adding to 390 sites already under construction.
The company said: “The group is working hard to increase production in response to the improved demand evident in all our regional markets.
“To deliver the volume to meet this increased demand, we are maintaining our strong investment in land and stepping up our investment in construction.”
It is the latest builder to confirm a sharp increase in profits thanks to improved access to mortgages and the Help to Buy scheme after Bovis Homes reported a 19% rise in interim pre-tax profits.
Help to Buy has been boosting new build take-up and the programme is being extended next year to existing homes. Persimmon a recent entrant to the FTSE 100 Index has seen reservations jump by 30% since the support scheme was introduced.
It said overall selling prices had remained stable in the first half, but private reservation prices had risen by 5% to an average £179,199.
Chris Millington of Numis Securities said: “Persimmon’s performance on margins is impressive and has led to large upgrades.
“However, we still feel the shares are too expensive relative to peers.”