Atlantic Capital Markets have selected Persimmon (LON:PSN) as their pick of the house building shares following a raft of results from the sector.

John Woolfitt, Director of Trading at Atlantic Capital Markets said “after the recent flurry of figures from the sector I would lean towards Persimmon for investors as my pick of the big three.”

Atlantic Capital Market‘s view is derived from weakness they suffered last year causing underperformance against their peers.

“Despite the reputation being knocked last year due to poorer build quality and high executive pay they have taken strong steps to counter this problem which did weigh on figures. They have announced bigger investment into ensuring better build quality which did delay some completions in the short term but will good for the longer term.”

“From an investors point of view both the high dividend yield and low P/E makes for an appealing buy.”

Mr Woolfitt also touched on how Persimmon focused on their customers and that this is likely to provide support for their properties over the long term.

“From a home buyers point of view they are the first housebuilder to introduce a customer retention scheme and make a concerted effort to improve build quality which will have a good long term impact on sales.”

Although Atlantic Capital Markets are bullish on Persimmon, there were reservations on the rest of the sector saying they would “highlight caution in investing fresh money into the sector in the near term, based on the run they have all had since the election. Analysis on Taylor Wimpey, Barratt Developments and Persimmon all indicate overbought in the short term.”

“Existing holders should keep holding and any fresh investors should wait for a pullback in share prices to find an entry level.”

Persimmon (LON:PSN) shares were trading at 3,029p in Thursday afternoon trade, just shy of all time highs.