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Bovis Pushes Prices Up 3.2% In 'stable' Housing Market

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http://www.thisismoney.co.uk/money/markets/article-2031667/Bovis-pushes-prices-3-2-stable-housing-market.html

Bovis pushes prices up 3.2% in 'stable' housing market, but bemoans curbs on mortgages

Bovis lifted its average selling price by 3.2 per cent to £163,400 in the first half of 2011 as it reaped the benefit of a switch in strategy to building larger, family homes.

The focus on a sector less exposed to first-time buyers struggling to get mortgages has been accompanied by a move to buy more land in the south of England where the market has been more resilient.

Bovis said housing market conditions remain 'significantly constrained' by restrictions on mortgage availability and requirements for higher deposits, but overall house market pricing has remained stable during 2011 to date, with some regional differences.

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Market strategy: Focusing on family homes is paying off for Bovis

'Pricing in prime southern locations has been more robust than in locations further north,' it said.

'In the short term, the group expects market pricing to remain relatively stable at the current levels, as the group foresees few significant changes in either housing market supply or overall customer demand.'

The Kent-based group reported that pre-tax profits rose 131 per cent to £8.1million in the half year to June 30 as it put in a 'strong performance' despite the slowdown in the housing market.

Revenues increased 16 per cent to £133.6million in the period amid the 'stable, but challenging, market conditions'.

Bovis managed to hike operating margins to 7.5 per cent from 4.2 per cent after it reduced construction costs and started to benefit from snapping up land at cheaper prices following the recession.

It announced a half-year dividend of 1.5p following a two and a half year hiatus, and said subject to current market conditions continuing and the successful delivery of future plans it expects to grow dividends 'progressively' as earnings per share increase.

The stock rose 18.35p to 369.35p in early morning trading.

Bovis completed the sale of 801 homes in the first half of the year, slightly down on the 803 a year ago.

However, the group said it had seen strong trading in recent months, with a 19 per cent increase in private reservations to 1,087 homes in 2011 so far.

As a result, it expects the number of completions to rise by between 5 per cent and 10 per cent over the full year.

The group also predicted its profits will continue to grow as its current strategy bears further fruit.

It has made further progress in buying land, mainly in the south of England, and is set to open a total of 14 new sites in the second half of the year.

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http://www.thisismoney.co.uk/money/markets/article-2031667/Bovis-pushes-prices-3-2-stable-housing-market.html

Bovis pushes prices up 3.2% in 'stable' housing market, but bemoans curbs on mortgages

I remember the trouble one family had with Bovis. http://www.dailymail.co.uk/news/article-1040292/Couple-shame-Bovis-internet-list-dozens-faults-new-700-000-home.html

The relevant websites and blogs appear to have been removed, I expect a gagging order has been used.

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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