UK housebuilder hopeful despite credit crunch

UK housebuilder Persimmon today signalled that recent interest rate cuts had helped improve consumer confidence as the firm remained cautiously optimistic for 2008.

The Charles Church owner said the impact of the credit crunch on the housing market appeared to be “easing a little” following rate cuts in December and February.

York-based Persimmon said weekly sales volumes were on the up and current sales cancellation rates down a third from levels seen during the autumn. The group expects sales to grow during the next six months.