* H1 pretax profit of 9.8 mln stg vs 36.9 mln in 08
* Write-up of 28 mln stg
* Says pricing stabilised across UK, sales rate improves
* Remains cautious on outlook
* Shares up 0.68 pct (Adds CEO, analyst comment, share price, background)
By Lorraine Turner
LONDON, Aug 25 (Reuters) - British housebuilder Persimmon posted lower first-half results on Tuesday but signalled that further writedowns were unlikely, and its positive comments on price stabilisation added support to growing confidence in the sector.
The York-based housebuilder, one of the country's largest by market value, echoed signs of improved activity in the housing market in recent months, supporting evidence that the UK economy may emerge from the recession this year.
Persimmon said it expects sales rates to remain robust, based on low stock levels and good demand for new homes.
Nonetheless, Persimmon's CEO warned that a lack of higher loan-to-value mortgages continues to dampen growth in the sector, echoing comments from other builders.
"We're encouraged by what's happened so far, but it is too early too call (the bottom of the market) ... These are good positive indicators, but mortgage availability is key to our industry, and although it has increased, it is still from a very low base," Chief Executive Mike Farley told Reuters.
The group posted a pretax profit of 9.8 million pounds ($16.17 million) for the six months to end-June, compared with 36.9 million last year, broadly in line with expectations.
This includes an exceptional release of 27.9 million pounds, it added, due to land writedowns at the start of the year being too conservative, signalling an end to further writedowns. The company reported a pretax loss of 18.1 million pounds before tax and exceptionals.
Shares in Persimmon were 0.68 percent higher at 0905 GMT, rising to a 15-month high of 522 pence.
"Pretax loss reported was higher than forecast, but a release of land provisions of 27 million pounds and positive noises on pricing are likely to be the drivers," said Robin Hardy at KBC Peel Hunt.
SUMMER BOOST
Mortgage approvals rose for a sixth consecutive month to 53,400 in July from 50,200 in June, according to data from the Lending Panel, supplied by the Bank of England
The trend is supported by signs of recovery emerging in the UK economy, with economists predicting a return to growth in the current quarter.
Persimmon said trading in the last eight weeks was ahead of its expectations in the traditionally quieter summer period, selling on average 155 houses a week, which is above rates from last year, said Farley.
Site visitor numbers also improved, as well as cancellation rates lowering, it said.
UK peer Bovis Homes also confirmed signs of stabilisation in the UK housing market despite posting a pretax loss of 8.6 million pounds for the first half on Monday.
Elsewhere, Irish building materials group CRH said on Tuesday the outlook in Europe will remain challenging in the second half after posting a sharp drop in profit.
Similarly to other large housebuilders which grew aggressively during the boom period, Persimmon has focused on reducing its debt pile, which now stands at 494.2 million pounds, compared with 905.5 million at the end of the first half last year.
Persimmon's Farley said margins will come back into focus in 2010, as the company targets year-end debt below 400 million pounds.
The builder completed 4,006 units in the first half, against 5,501 in the same period last year. The average selling price has dropped from 181,485 pounds to 155,524.
But forward sales remain robust, rising 9 percent to 910 million pounds. (Editing by Rupert Winchester)