Bovis sees rush for new homes

WITH Christmas out of the way, housebuyers are now queuing up for new homes, one of Britain's biggest builders has said.

According to Bovis Homes, reservations for its properties are more than 10% ahead of this time last year.

The news follows an eighth record year for the group, with the average price of a home 10% above the 2002 figure at £185,000 and buyers demanding an improved specification with bigger and more versatile rooms.

Bovis chief executive Malcolm Harris said that the last six months of the housebuilder's financial year which ended last month were 'strong', with increases in sales and profit margins.

In a trading statement today he forecast that operating margins will show an increase over 2002, itself a record year, and over those reported at the interim stage last June.

This has led Bovis to expand into a wider geographic area such as Yorkshire, North-West England and Lincolnshire so that it now covers most of England and Wales. It now has more sales outlets than ever before.

The success of Bovis has led to City speculation that the group may link up with Redrow to create a £1bn company that would rank as number five among Britain's housebuilders. However, Harris described the rumours as 'pure speculation'.

Bovis will report its final results for the year on 8 March.

Today its shares added 7p to 460p.