THE market for new homes looks set to keep booming according to housebuilder Persimmon which has reported a record level of forward sales.

The York-based company said forward sales for the second half of 2000 were already at £255m.

It said it continued to see strong demand although it added that the strength of the market had edged down in the South East, which has been at the forefront of the recent surge in the housing market.

Chief executive John White said the group's land bank of 33,000 plots put it in a strong position for the future.

Over the six months to June 30 Persimmon completed a similar number of homes to the same period in 1999.

But it said it increased average selling prices and its operating profit margins.