Shares in UK housebuilders rose on Thursday after Persimmon said it thought conditions in the sector were beginning to stabilise.

Mike Farley, chief executive, said trading had not worsened since a big downturn in April. Although pre-tax profits fell 64 per cent to £100.1m and the group slashed its dividend by more than two-thirds, Persimmon’s shares closed nearly 10 per cent stronger at 327p.