Persimmon has hailed the benefits of "robust employment levels, low interest rates, and a competitive mortgage market" as it told the City its pre-tax profits for 2018 would be "modestly ahead of current market consensus".

The housebuilder reported a four per cent increase in total group revenues to £3.74 billion.

Persimmon, recently under fire from politicians and shareholders over the £75 million pay packet for its former head Jeff Fairburn, said in a trading update that forward sales are ahead 3% to £1.4bn.

Total completions rose by 406 new homes to 16,449, a 3% increase on the year earlier, with the average selling price up by 1% to £215,560.

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Persimmon said in the trading update: "Whilst the future performance of the UK economy is currently subject to increased levels of uncertainty the group is well positioned with its strong outlet network together with the availability of a range of attractive house types at affordable prices across the regions of the UK, supported by a high quality land bank and conservative financial structure."

Helal Miah, investment research analyst at the Share Centre, said the political backdrop is expected to still play a part in the housing landscape, adding: "Our major concern for Persimmon and all the housebuilders is the outcome and the uncertainty over the Brexit situation.

"At this moment in time we are talking a relative positive outlook as a no deal scenario looks unlikely, should this change though we fear a downturn for the housebuilders to come."

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Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Persimmon is still selling more homes at higher prices, but the rate of growth is slowing."

Alasdair Ronald, Brewin Dolphin Scotland senior investment manager, said: "The business continues to offer some of the highest returns in the sector and remains the blue chip option among housebuilders."