Bovis Homes confident as housing market shows signs of improvement

Homebuilder Bovis Homes points to "signs of strong improvement" against an economic background which "remains challenging" in a trading update for the six months ended 30 June (release).

Consumers are increasingly able to access mortgage finance and the launch of the Help to Buy shared equity scheme, replacing FirstBuy, has had a positive effect on customers' confidence to buy a home and their ability to transact. These positive effects are expected to support greater activity in the new homes market, which in turn will provide an impetus to the number of new homes built.

Despite Bovis' positive view, many are very sceptical about the soundness of the Help to Buy scheme, and warn that it could cause serious distortions in the property market.

The firm saw an 11 per cent increase in trades of active sales outlets on the same period in 2012, with legally completed homes rising from 944 to 963.

Subject to stable market conditions continuing, sales rates are expected to support both the delivery of the Group's volume growth targets for 2013 and allow the Group to enhance its year end forward order book, supporting further growth in 2014.

David Ritchie, the chief executive of Bovis Homes said:

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.