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Persimmon, Britain's largest house builder by market value, has reported a 9.8 per cent jump in first-half pre-tax profits.

Profits before tax reached a "record" £281.1 million in the six months to June 30th, up from £256.1 million a year earlier, the company confirmed in a statement.

Operating margins also improved during the first half of the year due to the "tight control" of build costs, which Persimmon said "more than offset" the effect of challenging market conditions.

The company said that all its divisions had been impacted by wider industry difficulties concerning delays in obtaining planning consent for new developments. However Persimmon stressed that all parts of the business had reported underlying price growth - albeit with some regional and local differences.

Persimmon bosses are also confident that the business will benefit from a continued demand for new housing in the long-term, despite the usual summer lull in the market.

"We believe that as long as current assumptions on interest rates remain intact, and employment data continues to be supportive, purchasers will feel confident about job security," said Persimmon chairman John White.

"This, coupled with general confidence in the housing market, should deliver the normal seasonal upturn in activity throughout the autumn selling period," he added.

Persimmon said that the growth of its land bank continued to provide a "strong platform" for its business. The company increased its bank of plots to 82,145 in the first half, up from 80,085 at the end of last year.

The house builder's first-half sales climbed to £1.51 billion in the first six months of 2007, while forward sales for the second half of the year currently stand at £1.35 billion - around 85 per cent of Persimmon's full-year target.