Bovis housing profits boosted by Help to Buy

 
Kasmira Jefford
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BOVIS Homes has seen reservations and sales soar in the first half of the year, it said yesterday, helped by government schemes intended to boost demand for housing.

Bovis is the latest housebuilder to say government initiatives have helped to lift confidence in the housing market following similar statements last week from Taylor Wimpey, Galliford Try, Persimmon and Redrow.

Net private reservations jumped by 40 per cent to 1,389 in the first six months compared with the same period last year, and by around 60 per cent in the second quarter alone, when the Help to Buy scheme was launched.

“The group has performed well in the first half of 2013 with a significant further improvement in housing profit, delivered from the ongoing successful execution of the group’s growth strategy,” said chief executive David Ritchie.

“With the positive progress in executing its growth strategy, the group is well positioned to deliver higher shareholder returns,” he said.

Bovis, which has been focusing on building in the wealthier regions in the south of England, traded on an average of 91 active sales outlets in the first half, up 11 per cent on the same time last year.

It completed 963 homes in the first half, with the average sales price rising by 15 per cent to £188,500, helped by its strategy of building more family homes rather than flats.

The group said it it expected to post a strong increase in housing profit thanks to an improvement in the average sales price and profit margins.