Chief Executive Jeff Fairburn said the group's strong cash generation meant it would now pay out 95 pence a share to investors in April rather than July. The payment is part of a long-term plan to return 6.20 pounds per share of surplus capital to shareholders in a nine and a half year period.

However, shares in Persimmon were down 4.4 percent at 1,635 pence at 0927 GMT, the biggest fall in the FTSE 100 index <.FTSE>, with Liberum analysts saying investors were disappointed more of the capital return was not being advanced.

"The numbers looked alright, but the stock has been trading near its all-time highs, so it’s just some froth that’s coming off the top," said Central Markets trader Joe Neighbour.

Neighbour also noted that comments from Bank of England policymaker Kristin Forbes, saying higher interest rates may be needed "in the near future", were weighing on Persimmon and other UK housebuilders.

Persimmon posted underlying pretax profit of 475 million pounds ($734 million), broadly in line with market expectations, on revenue up 23 percent to 2.6 billion pounds.

Fairburn said 2015 had started well, with current total forward sales running 5 percent ahead of last year and more people visiting its sites.

"At this point of time we are pretty confident, but we are in the strong Spring selling period so you would expect good demand at this stage," he said in an interview.

"But (...) we've got the lead into the election, which may see some fall back in terms of the sales rate, and then it will pick up in the second half," he added, referring to national elections in May.

He said Persimmon would complete a similar, or slightly higher, volume of home sales this year as last. The builder has increased its volumes by 36 percent over the last two years.

On the level of cash return, Fairburn said he needed to strike a balance between returning surplus cash and retaining funds for land acquisitions.

"We will continue to review it as we go forward in line with how we see the market," he said.

($1 = 0.6471 pounds)

(Editing by Sarah Young and Mark Potter)

By Paul Sandle