Persimmon, Britain's second biggest housebuilder, said that it had seen a recovery in sales volumes which meant that its order book for 2010 was 50 per cent ahead of this time last year.

The York-based property group, which sold just over 10,000 homes last year, has already taken £500 million for house sales due to complete next year. It has also sold all its new-build properties that will be ready in 2009.

In a trading statement, Persimmon said that "the encouraging rate of sales achieved through the summer months" was "maintained during the autumn period" with prices holding steady and even edging up in some regions.

The average selling price of homes reserved since July 1 increased 6 per cent to £173,000, with sales of more expensive properties - homes rather than flats - boosting the mean figure as well as the modest price improvement.

Debt levels, which earlier this year were so high that the company was widely expected to be forced into a capital raising, continue to drop. Total borrowings were £399 million at October 31, compared to £960 million this time last year, and £600 million in the spring.

Persimmon said that October usually represents "a peak debt month", and so the housebuilder expects debt to end the year "significantly lower" than the level achieved at the end of last month. That means it will exceed its previous debt reduction target, set at the time of its interim results, of taking borrowings down to £400 million.

Overall, the group said it remained on track to meet City expectations for the year ending January 7 2010, although the company did warn that "any significant increase in unemployment" as the recession deepens could kill off the recovery.

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