Housebuilder reports strong trading in the first half of 2016

Bovis Homes has said it will respond to the EU referendum result with 鈥渞estraint鈥� and 鈥渄iscipline鈥� in the short term, but is convinced the future remains rosy for housebuilders.

In a trading statement, the housebuilder said it was 鈥渢oo early to assess the impact鈥� of Brexit on the housing market, but the firm said it was 鈥渨ell positioned to take further advantage of a fundamentally positive land market at the right time鈥�.

The firm added: 鈥淭he housing market fundamentals remain strong with high demand from home buyers, good availability of affordable mortgages, good land supply and cross party political support to build more homes in the UK.鈥�

Like many housebuilders, Bovis Homes鈥� share price has been hammered since the EU referendum. It will open at 拢6.27 today, down 39% from 拢10.24 at the end of polling day on Thursday 23 June.

Over the first half of 2016, legal completions increased to 1,601, up from 1,521, while its average sale price increased 15% to 拢255,000, up from 拢222,000, in part reflecting a shift towards delivering more family homes in the south of England.

Bovis said it experienced a 鈥渟trong鈥� Spring selling season, before a seasonal reduction in the summer. Since June, the firm said it had continued to 鈥渟ee a healthy level of interest on our active sites鈥�.

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