The firm started the year with a sales order book of £565m, down from £638m in a tough year previously, with sales hit by the planned austerity measures and bad weather during November and December.

Sales rates have now dramatically turned round with the total value of new sales reservations taken in the year to date increasing by 12% from the same period last year.

The house builders order book, including legal completions already achieved this year, stands on a par with last year at £1.14bn.

Persimmon expects its average selling prices to improve in 2011 as it shifts its mix towards its pricier Charles Church homes and family housing.

The company is also well backed by its banks, with a new five-year £300m revolving credit facility agreed at the start of April.