Help to Buy aids Bovis 50% increase
The house builder’s half-year results revealed a 43% jump in reservations of new build homes so far in 2013, while the average sales price of homes increased by 15% to £188,500.
The group has now achieved 90% of its sales target for the year. Bovis Homes chief executive David Ritchie said an increase in sales outlets had helped to boost reservations:
“This improvement has been further assisted by the positive effect of stronger home buyer sentiment, supported by the Help to Buy scheme launched in April 2013.”
Thanks to the government scheme and a general improvement in confidence, the seasonal summer lull in reservations was less sharp than in previous years, the update noted. Profits before tax for the first six months of 2013 were £18.6m, with revenue from legal completions 17% higher than the same period in 2012 at £181.6m.
The group completed 963 homes over the period, of which 87% were private homes.
Legal & General Mortgage Club managing director Ben Thompson said it was encouraging to see house builders post strong results, although it could be argued government schemes were the main driver behind the positive numbers:
“Whatever the driver, the fact remains there is a chronic under supply of housing stock in the UK.
“The onus is now on house-builders along with government, mortgage lenders and the industry as a whole to meet this challenge.”