Persimmon is to build a new brick factory early next year as it reports ‘encouraging trading conditions’.

The factory will be located near Doncaster, with building set to start in the first quarter of 2017.

The house-builder said: “This exciting new extension of Persimmon’s manufacturing capabilities will enhance the support provided to the group’s house-building operations into the future.”

A trading statement covering July 1 to November 1, 2016, said its private sales rate in the period since its half-year results on August 23 had been 19% ahead of last year.

The statement said: “We are now fully sold up for the current year and have circa £757m of forward sales reserved beyond 2016, an increase of 4% on the same point last year.”

The builder said the market was continuing to benefit from resilient consumer confidence and strong lender support as well as the low Bank of England base rate. It warned that it was remaining cautious regarding new land investment due to the EU referendum result.

However, analysts were less convinced.

Helal Miah, of the Share Centre, said: “Despite these encouraging numbers, we continue to recommend Persimmon as a ‘hold’. In light of the greater risks created to the UK economy from the UK’s decision to exit the European Union, we have raised the risk profile of Persimmon and many other house-builders to ‘high’.

“So far, however, house-builders have generally reported that there has been limited Brexit affect, although it may still be too soon to be confident on this.”