HOUSEBUILDER George Wimpey predicted results for the year would be at the top end of market forecasts after it unveiled a 29 per cent rise in half-year profits to £158.5m.

The company played down the impact of higher interest rates, but said it expected more modest house price inflation than previously experienced, and still said results for the year would be at the top end of market forecasts.

Wimpey employs 200 people in the region and has worked on projects across the North-East in the past six months, including Manor Fields, at Wynyard Park, near Billingham, Birkdale View, at Consett, County Durham, and Meadow View, at Ingleby Barwick, near Stockton.

Wimpey's confidence has been helped by the completion of a three-year plan to boost operating margins and improve the performance of US division Morrison.

All of its housebuilding divisions reported strong half-year profits growth, with recent acquisition Laing Homes showing the best improvement - up 43 per cent to £17.1m.

George Wimpey profits rose 22 per cent to £138.7m, while Morrison Homes was ahead 33 per cent to $60.1m (£33m).

The businesses also has strong order books, with 80 per cent of projected sales for this year already reserved or completed in the UK, and 90 per cent in the US.

Previous efficiency efforts resulted in an operating margin of 17.1 per cent at George Wimpey, while there was still "room for improvement" at Laing Homes, despite an increase to 12 per cent from 10.6 per cent a year earlier.

Total completions at Laing were up 67 per cent at 533 in the six-month period, although action to reduce the exposure of the business to the £500,000-plus market meant its average selling price fell to £308,000.

At George Wimpey, total completions were up four per cent at 4,560.