Tue 6 May 2008
Bovis Homes resolves to carry on building
Bovis Homes has declared its intention to continue opening new sites, despite the market’s current volatility, which has sent the firm’s share price tumbling.Unlike Persimmon Homes, which declared at its AGM two weeks ago that the firm would be downing tools on new sites until the market improves, Bovis is set to open between ten and 15% more sites, it confirmed in an unscheduled trading statement. Bovis has confirmed that it will not be able to build the target 2,200 units this year forecast at the firm’s full-year results on March 10.
Analysts at Panmure Gordon have said that the firm’s sales will benefit from its plan to open between ten and 15% more sites.
The firm is blaming a lack of available mortgage deals on the market on its rising number of cancellations, it stated in an unscheduled trading statement ahead of its AGM later this week.
In March, 2,932 deals were taken off the market, according to financial information group moneyfacts.co.uk.
“Cancellations have gone up, and it’s not surprising as people can’t raise mortgages,” said Malcolm Harris, the firm’s chief executive. “Our visitor numbers have held up pretty well, but we’re seeing people who thought they could afford to make an offer find a property, only to go back to their lender and find that the mortgage they’d arranged has been with has been withdrawn. We have a number of new outlets where we believe demand it still good.”
“It is good news that Bovis will continue to develop new housing based on local market conditions, but this may not be enough to maintain current housebuilding levels,” said the Royal Institution of Chartered Surveyors. As we see the impact of current housing market conditions on housebuilders’ activity, the government’s target of building 240,000 new homes each year is slipping even further out of reach.”
Posted by Natalia Gameson
in Bovis Homes, Malcolm Harris, News, Panmure Gordon, Persimmon Homes on Tue 6 May 2008
Have your say and comment on this article