Persimmon CEO sees good demand, firm house prices

U.K. homebuilder Persimmon sees good demand and firm prices in the housing industry after revenue jumped 12 percent in the first half of 2013, the chief executive of the company told CNBC.

"We're very pleased with what we've achieved so far this year, we've seen increased customer demand...People are more confident about buying housing and we're stepping up our production to meet that demand," Jeff Fairburn told CNBC Europe's "Squawk Box."

On Tuesday, the home builder reported a 40 percent increase in underlying pre-tax profit of £135.3 million ($211.3 million) in the first half of the year, with forward sales up 21 percent.

"We sell to the man on the street our broad market place is family housing and we're seeing strong demand for that," Fairburn said, adding that government schemes such as "Help To Buy" had boosted demand.

(Read more: Bovis CEO dismisses fears of UK housing bubble)

He dismissed concerns that families won't be able to cope with a rise in interest rates and said lending practices had improved with better stress tests.