ANOTHER year of record-breaking results is expected next week for Persimmon plc, the parent company of York-based Persimmon Homes Yorkshire.

Company shareholders can expect at least a 25 per cent rise in their dividend when the results for the year running to December 31, 2004, are formally announced in February.

This is despite reports yesterday that house prices in the UK fell last month as interest rates took their toll. About 48 per cent more chartered surveyors reported lower rather than higher prices in the three months to November, according to a survey by the Royal Institute of Chartered Surveyors. It represented the biggest number reporting falls in 12 years.

But Persimmon chief executive John White said the firm remained very well placed in the current trading climate, operating from 12 per cent more sites than at the same time last year.

He said: "When we announced our interim results in August, we commented that the market was more subdued. It became apparent at the beginning of May of this year that the market was easing following a period of high sales volumes and continued price growth.

"At that time we adjusted our hurdle rates for the purchase of new land as well as reviewing build programmes and commitments, in line with our expectations based upon these changing conditions.

"During this period, new house prices have remained stable, whilst there has been an adjustment in second-hand house prices."

Persimmon completed about 12,400 homes this year, almost 300 more than 2003, with the average selling price rising by about 11 per cent to £172,000.

The housebuilder has orders for more homes amounting to £550 million and has increased its strong land bank to about 59,000 plots - an almost five-year supply at current build rates. It has also reduced its debt by about 16 per cent.

Mr White said: "The fundamentals for the housing market remain good, with historically low interest rates, good employment prospects and a robust economy."

The booming firm announced stunning half-year results in August, with pre-tax profits of £220.3 million - a 45 per cent increase on the £151.7 million achieved in the first half of 2003.

It even outstripped all optimistic projections made by city financial analysts, who were enthusiastically predicting pre-tax profits of £204.1 million.

Earnings per share in the six months to June 30 were 53.6 pence, compared with 37.6 pence in 2003.

Updated: 11:30 Wednesday, December 22, 2004