Persimmon has reported record first half profits in a welcome sign that the housing market could be over the worst. The company said that pre tax profits for the first six months of the year increased by 7% to £235 million with sales expected to pick up in the second half of the year. The company’s share price closed up 35p at 840p and other housebuilders followed suit. Barratt Developments gained 3.7% to 700p, Bovis Homes rose 2.7% to 623.5p, Bellway also rose 2.7% to 857p and Redrow gained 2.9% to 405p. Persimmon chief executive John White cited a drop in interest rates as one reason for an upturn in the industry. “This quarter point rate cut has helped to improve sentiment in the housing market.” Persimmon said it had seen reservations for new homes increase by 8% since July 1 compared with the same period last year. White said: “Normally we’d expect autumn sales to pick up from the middle of September through to November, and the signs are encouraging and wouldn’t lead us to thinking that it wouldn’t happen this time.”