Chairman Nicholas Wrigley revealed plans to step up production as the firm posted a 40% rise in underlying pre-tax profits for the first half of the year to £135m this morning

Persimmon plans to open a further 85 sites before the end of the year and is recruiting technical and sales staff to cope with rising demand.

The top three volume house builder said it would also further raise production at its Space4 factory, specialising in timber frame modules for the social housing market.

Persimmon’s current order book, including legal completions since  July is now 21% up on the same point last year at £1,257m.

Wrigley said: “To deliver the volume to meet this increased demand, we are maintaining our strong investment in land and stepping up our investment in construction.

“Having successfully opened the planned 90 new sites in the first half of the year, we expect to open a further 85 new sites through the second half of the year.

“In particular, Persimmon’s multi-year trade apprenticeship programme has been expanded and will see over 100 apprentices join the business each year, and a corresponding programme of new hires in technical, managerial and sales functions across our office network.

Wrigley said the firm had also reached its target margin of 15% eighteen months ahead of plan.

Legal completions across the business rose 7% to 5,022, helping to deliver revenue rise of 12% to £900m.

In the first part of the year, the Persimmon family housing brand increased volumes by 5% to 2,982 new homes delivered.

Its upmarket Charles Church brand increased volumes by 2% to 1,140 new homes while the Westbury Partnerships business sold 900 new homes to housing association partners, up a fifth on the previous year. This big volume increase was supported by Space4, which stepped up output by 15%.

Persimmon said the average selling price of new homes was 5% ahead of the prior year at £179,199, due to an increased proportion of larger family homes.