Housebuilder Persimmon has reported strong sales as the autumn selling season gathers pace, although industry valuations are beginning to raise concerns in the City.
The York-based firm has sold its stock of homes for this year, it said in a statement covering the 14 weeks to November 3, while its forward sales of around £780 million were a 12 per cent increase on a year ago.
It added that since it posted its half-year results on August 18, sales were 12 per cent ahead on a year ago.
But Persimmon's shares were down almost three per cent on the back of a profit warning from estate agent Countrywide and a gloomy note from analysts at Liberum on Tuesday which questioned valuations in the sector. Shares in other housebuilders also fell.
Countrywide warned that full-year profits are likely to fall as it blamed a lack of properties being put on the market.
It added that operating profits for the nine months to September were down 11 per cent on the same period last year and full-year profits are likely to fall short of the 2014 total of £121.1 million.
However, Persimmon said mortgage approvals in September were 13 per cent up on a year ago.
It added that recent rules introduced by the Bank of England to ensure banks and building societies lend responsibly will "support a more stable and sustainable outlook for the housing market in the UK in the future".
The FTSE 100 firm added that it has started 105 new housing developments in the second half of the year.
It opened offices in Stockton in Teesside and Castle Bromwich in the West Midlands the first half of the year and said both are trading well.
Hargreaves Lansdown analyst Keith Bowman said Persimmon had delivered "robust" forward sales and cash generation.
But he added: "With the share price up over 30 per cent during the last year compared to a decline of two per cent for the wider FTSE 100 Index, valuation concerns have begun to grow louder."
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