Bovis Homes' sales hit immediately after the EU referendum

Helen Cahill
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The housebuilder said it had been paying less for land as a result of the EU referendum (Source: Getty)

Bovis Homes' sales were hit by the Brexit vote, but have stabilised since as the market absorbs the news that the UK will be leaving the EU.

Chief executive David Ritchie said sales were impacted in the weeks immediately following the EU referendum, but have increased since then to become "more of a normal summer market".

Read more: Bovis bullish with strong results - but impact of Brexit still unclear

Ritchie said: "We are open for business and continue to buy land in the market.

"We have dialled in a risk-adjusted view, paying less for land than we otherwise would have paid, giving us a buffer on returns. But we are keen to buy land. A housebuilder with no land is not a builder."

Today Bovis Homes announced a year-on-year revenue rise of 18 per cent in the first half of 2016, and operating profit also rose 18 per cent, up to £63.9m as compared to £54.3m a year ago.

The company also reported a dividend rise from 13.7p last year to 15p this year - but the housebuilder's share price fell by three per cent in morning trading, despite the news.

15 August 2016 @ 11:45amBovis Homes Group (BVS)

On the fall in share price, Ritchie said: "People are taking a view that only they can explain. I have to leave it to others to judge what the company is worth."

Read more: Here's everything you need to know about house prices since the Brexit vote

Bovis Homes said this morning that it was too early to tell what the impact of the EU referendum will be on the housing market. Ritchie said people need to wait to see the "wider economic position that a lot of people are trying to get their head around."

George Salmon, equity analyst at Hargreaves Lansdown, said: "Despite selling more houses at higher prices in the first half of the year, the sentiment around Bovis shares remains dominated by the potentially disruptive impact that the Brexit could have on the second half of this year and beyond.

"Recent surveys show confidence in the UK construction sector has fallen sharply since the vote, so it’s not hard to see why shares across the housebuilding sector are still well below their pre-referendum levels."