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Thursday 02nd of April 2009
November 7, 2007

Bovis reports slow autumn sales


by Gill Montia
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Bovis Homes, one of UK’s largest house builders, has reported that the autumn selling period has been slow and that prices of its new homes will fall as a result.

The lack of activity over the key autumn selling period is attributed to low levels of confidence amongst buyers and sellers.

According to Malcolm Harris, the company’s chief executive, the average selling price of a new Bovis home will be 3% lower than in 2006.

This amounts to a reduction of £5,500 on the £184,000 average price achieved last year.

As a result, profit for 2007 will be below market expectation, as sales volumes are also expected to drop slightly during the year.

Other major house builders are also feeling the pinch and Credit Suisse has cut its rating on Taylor Wimpey, Barratt and Persimmon.

Wimpey and Barratt have already warned of falling demand, blaming consumer confidence and higher interest rates for the downturn.

Mr Harris remains confident that the outlook for the housing market is strong and that for the mid and longer-term “supply and demand dynamics remain very attractive in the housing market”.

However, “In the short term, sales will reflect this recent decline in consumer confidence, in particular as it relates to major consumer purchases”.

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