Price rises, cheap loans cheer Bovis

RESERVATIONS of new Bovis Homes are running 5% ahead of last year and sale prices are showing strong increases, chief executive Malcolm Harris said. He told analysts that margins at the group were broadly in line with expectations.

Interest rate cuts and a competitive mortgage market have enabled more homebuyers to afford home loans, now at their cheapest since the mid-1950s.

Earlier this year Harris said growth in the first half had slowed as work on its construction sites was affected by torrential rain. The autumn of last year was the wettest for 125 years.

Bovis's financial year ends in December and analysts predict pre-tax profits of about £76.3m. Last year the group made £67.1m.

The average price of a Bovis home during 2000 rose by 12.7% to £123,300. Average prices are expected to have increased by at least 10% in the current year.

Bovis shares slipped 1p to 317p. They hit a peak of 398 1/2p in the summer.