Monday, March 9, 2009

Bovis said that the availability of mortgages for home purchase had fallen 70% during the year

Bovis Homes reports £78.7m loss

The housebuilder Bovis Homes has reported a pre-tax loss for 2008 of £78.7m, compared with a profit of £123.6m for 2007. It decided to write off £77.4m of the value of its assets such as land. It has also written off £10m of the benefits it had expected from the 2007 acquisition of Elite Homes. Bovis boss David Ritchie described it as "an unprecedented year", saying there had been, "the toughest trading environment for many years". He blamed the problems on "declining mortgage finance availability and poor economic conditions, allied with low consumer confidence".

Posted by troy @ 08:09 AM (699 views)
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3 thoughts on “Bovis said that the availability of mortgages for home purchase had fallen 70% during the year

  • Mr Bovis blamed “declining mortgage finance availability” NO MR BOVIS the PROBLEM is a decade of irresponsible lending for mortgages 125% LTV + 7 x’s income because the government /BOE / FSA didn’t regulate the lenders . Those days have gone now, back to sensible lending because 190% rises in property prices broke the banks . If Mr Bovis feels he has just experienced an uprecedented year I assume he means in comparison to the unprecedented years of inflating house prices beyond anyone’s reasonable income? Mr Bovis is going to have to come to terms with some tough decisions ahead when he realises that his £300000 homes are worth £180000 by the end of the year (Guardian / Observer and others spoke of 40 – 50% falls by the end of the year with lending returning to 3.25 loan to income) . Now yes one could say “unprecedented falls were seen in 2009” BUT these only relate of course to the “unprecedented” rise!

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  • More fool the investors, so their pre tax loss isn’t as bad as they expected but its not going to get better anytime soon.

    Sell, Sell, Sell!

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  • it_is_going_with_a_bang says:

    … and over priced housing.

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