Persimmon PLC (LON:PSN) said order books are healthy and demand for new homes is strong right across the UK.
To meet the demand, the housebuilder added it had bought a further 10,000 plots in 48 sites.
Average selling prices rose by 4.9% to £236,200 (2020: £225,066, 2019: £216,942) reflecting the stronger market conditions experienced throughout the period. Excluding social housing, the average price is £258,200.
Persimmon added that this house price growth is mitigating the effect of the upwards pressure on costs.
Royal Institution of Chartered Surveyors (RICS), the industry trade body, also said today its members expect prices to keep going up due to a lack of properties coming onto the market.
New listings fell by a third in June, said RICS, but with demand still strong this is pushing up prices.
Persimmon added that its own forward sales are worth £1.82bn, or down slightly from a year ago, though forward prices are rising as well.
The group said it completed 7,406 units (2020: 4,900, 2019: 7,584) in the half-year to June 2021.
Revenues were £1.84bn against £1.19bn a year ago and £1.74bn in 2019 while cash jumped to £1.32bn (2020: £0.83bn).
Because of the strong cash position, the builder said it would accelerate the payment of last year’s planned special dividend of 110p that had been delayed due to Coronavirus (COVID-19) uncertainty.