Recent increases in the interest base rate have acted to balance the housing market, according to one new home builder.

Construction firm Persimmon has asserted that the three quarter-point interest-rate increases effected by the monetary policy committee this year have had no negative affect on the housing market, due to ongoing robust demand.

In a trading statement released today, Persimmon commented: "Recent interest rate rises have had the desired effect and the housing market is stable with only moderate price growth."

"Employment prospects and customer confidence remain good and as a result the market has continued to be resilient. In the absence of any major change to the UK economy we expect this situation to continue."

Reporting first-half results, the company stated that it had completed around 8,000 new homes and was meeting expectations for growth in 2007.

Last week the chairman of Persimmon, John White, criticised the decision by the Office of Fair Trading (OFT) to investigate the housebuilding market, telling the Telegraph that he did not understand why the regulator would become involved in the sector.