Bovis lifts the gloom in sector with good demand for homes
BOVIS HOMES has cast aside housing market fears as it reported “robust” demand for new properties and said industry fundamentals remained strong.
The housebuilder said it was on track to meet full-year targets after revealing it was fully sold for 2017, and saw growth in its sales rate edge higher to 0.52 between July 1 and November 10, up from 0.48 during its first half.
Its average selling price is set to increase by year-end, while “demand for new homes continues to be robust across all our regions and customer interest remains good”.
The update comes after fellow builder Taylor Wimpey shrugged off industry concerns over a cooling property market on Monday, cheering high demand for new housing.
The bullish report saw Bovis shares rise more than 1 per cent, while it also sparked gains across the housebuilding sector, with Persimmon, Taylor Wimpey, Barratt Developments and Bellway moving higher.
Greg Fitzgerald, chief executive of Bovis, said: “Trading is in line with expectations, the market remains strong, and we are on track to deliver another disciplined period end.”
The group said “industry fundamentals” were strong thanks to support from Government housing policies including Help to Buy and a “competitive” mortgage market.
The upbeat outlook from Bovis and Taylor has helped ease worries over the sector after gloomy reports last week from rivals Persimmon and Redrow.
GREG FITZGERALD: ‘We are on track to deliver another disciplined period end.’