Interim profits at construction company Persimmon jumped by 65 per cent after the firm concentrated on building family homes in posh areas to overcome the sluggish housing market.
The York-based builder, which owns brands including Charles Church and Westbury, grew revenues by 13 per cent to £806.7 million in the six months to 30 June.
The strategy helped underlying pre-tax profits hit £98.7m, meaning the group is on course to ramp up dividend payments as part of plans to return £1.9 billion of surplus cash to shareholders over the next nine years.
The group said private reservations have slowed from the 18 per cent growth in the first half but are still 5 per cent ahead of last year since the start of July, while it has already sold 220 homes through the UK government’s NewBuy scheme, which encourages the return of 95 per cent mortgages in England and Wales.