by business editor Trevor Sturgess

The housing market has shown signs of revival as Persimmon, the homes group with developments in Kent, pushed up half-year profits to £60m.

In the six months to June 30, the parent company of Persimmon Homes South East made a pre-tax profit of £59.7m, up 52 per cent on the same period in 2010 (£39.4m).

The business has developments in Ashford, Strood, Leybourne, Isle of Sheppey, Sandgate and Minster (Ramsgate), and is about to launch a new site in Leybourne, near West Malling.

The group legally completed 4,439 new homes sales (H1 2010: 4,657) at an average selling price of £162,647, a fall of 3.7 per cent due to a change in the property mix.

Total sales revenue fell from £776.6m in the first half of 2010 to £712.8m. Forward sales, including legal completions, rose 10 per cent, with the weekly sales rate since June 30 four per cent ahead of last year. The group cut net borrowings from £122.1m to £15.2m.

Richard Matthews, managing director for Persimmon Homes South East, based in Weybridge, Surrey, said: "The South East residential market has remained constant during the first half of 2011 and we recorded stable visitor levels to our developments.

"Demand for housing still remains high and this has been assisted with the easing of mortgage lending in recent months.

He added: "We remain optimistic and feel we are well placed to meet the opportunities and challenges we face in the second half of 2011 and beyond."

Paul Connolly, a director at project and construction consultancy, Turner and Townsend, said it was a good set of numbers.

"House builders generally are in a more robust position than a year ago and continue to move in the right direction, but further challenges lie ahead."