Bovis sees further signs of stabilisation

18th Nov 2009 07:01

Housebuilder Bovis said it has seen further signs of stabilisation in the housing market and expects more pricing stability and modest growth in mortgage availability in 2010.In the year to 13 November, the group has achieved 1,488 private reservations, some 83% ahead of the comparative figure for the same period in 2008. When combined with social housing sales and private sales held at 1 January, it achieved cumulative sales of 2,178 homes (2008: 2,023 homes). Bovis anticipates legally completing circa 1,800 homes in 2009 (2008: 1,817 homes), with the balance forming a solid forward sales position for 2010. Of the anticipated legal completions, circa 1,500 are expected to be private homes (2008: 1,223 homes) and circa 300 are expected to be social homes (2008: 594 homes).The group said it has experienced a modest improvement in underlying private sales prices for reservations taken since its June half year together with some regional mix changes. Based on present view of current and future sales price trends, there is a likelihood that a net provision release will be made at the end of the 2009 financial year, it added.'Looking ahead into 2010, the group expects to see a continuation of the current market backdrop, with pricing stability and further modest growth in mortgage availability,' Bovis said.'With a strong balance sheet and a clear strategy underpinned by both the capacity and ability to acquire new residential land assets which have the potential to achieve at or above investment hurdle rate returns, the group remains well placed to create value for its shareholders into the future.'