Builders' merchant and DIY group Travis Perkins is expecting to benefit from a pick-up in home improvement after being squeezed by the delayed effect of a mid-2014 housing market slowdown.

The Wickes owner, whose fortunes are closely linked to the UK property market, said a fall in mortgage approvals in the middle of 2014 had fed through to take its toll on the group's repair and maintenance markets in the second quarter of this year.

Uncertainty caused by the general election also had an effect.

But Travis still hailed a strong first half performance as operating profit excluding property transactions rose nine per cent to £182 million, and indicated that a recovery in the housing market added to optimism for the rest of 2015.

Chief executive John Carter said the business had delivered a "strong underlying performance" in the six months to the end of June.

The group said: "The overall economic outlook remains encouraging, with falling unemployment, low interest rates and low inflation contributing to a rise in real wages and increased consumer confidence."

Travis added that housing demand was outpacing supply amid population growth, immigration and trend towards smaller family properties, meaning 225,000 households being created a year against 141,000 new homes built in 2014.

"This demand for houses along with historic under-investment in the existing housing stock gives a reasonable expectation of growth in both the new house-building and the repair, maintenance and improvement (RMI) markets," it said.

Like-for-like revenues grew 5.7 per cent, including 6.7 per cent growth for its main general merchanting business supplying builders, and 6.5 per cent for its consumer arm, including Wickes, Toolstation and Tile Giant.

But there was a 2.9 per cent fall for the group's plumbing and heating businesses, attributed to "intense price competition" though the group said there were signs of recovery in the bathroom installation market.

Travis added: "The RMI market experienced some weakness in Q2 2015 as it lagged a dip in mortgage approval rates in the third quarter of 2014 coupled with the effects of uncertainty related to the May general election.

"Stronger mortgage approvals in early 2015 provide confidence that stronger growth will resume in the second half of the year."

Mr Carter said the group continued to expect a full-year result in line with expectations, with double-digit profit growth and sales outperforming the market.

The group hiked its interim dividend by a fifth to 14.75p "reflecting confidence in future growth prospects".

Liberum analyst Charlie Campbell said increased spending plans meant "an absence of positive surprise" from the figures - though the investment was being made to support future progress.

Earlier this year, Travis set out plans to open 400 new branches creating 4,000 jobs over the next four years, supported by an investment programme of between £150 million and £200 million a year.