Bovis Homes announces a 40% increase in private reservations

Press Release   •   Jul 08, 2013 10:43 BST

Bovis Homes Group Plc rose to the highest in almost six years after the UK homebuilder said it had a "significant improvement" in first-half profit as sales volumes and prices beat the company's expectations.

The company announced a 40 per cent increase in private reservations compared to the same period in 2012.

In a trading update for the six months to 30 June 2013, the housebuilder completed 963 homes, compared to 944 the previous year. The firm also added 2,767 new plots to its landbank.

It said the net private sales rate per site per week improved by 26 per cent, "benefiting from the improving quality of active sales outlets and the positive effect of stronger home buyer sentiment".

Sentiment was supported by the UK government's Help to Buy scheme, launched in April and only available south of the Border.

In the second quarter of 2013, Bovis achieved a net private sales rate per site per week approximately 60 per cent ahead of the same three months in 2012.

"Trading in the first half of 2013 has been strong and the group has achieved a 40 percent increase in private reservations compared to the same period in 2012," Chief Executive Officer David Ritchie said in a statement this morning.

"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," he added.

The update came ahead of the firm's its half year results due to be announced on 19 August.

Follow us on Twitter @CandMResearch issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.