Bovis house sales fall 20%

Bovis Homes has reported a 20% fall in sales so far this year.

The company’s chief executive, Malcolm Harris, has called on the Bank of England to cut interest rates, while also urging mortgage lenders to do their bit to make it easier for homeowners to borrow money.

Mr Harris believes first-time buyers were being pushed out of the market by high interest rates and demands from mortgage companies, including deposits of up to 15%, stating: “If interest rates do not come down and if the spring selling season is not positive, then we could see volumes will be down in excess of 20% for the full year.”

He describes the housebuilding sector as “a bellwether for the wider economy with 8% of the UK workforce in construction and housebuilding”.

Bovis has traditionally been one of the more profitable companies in the housebuilding sector but with sales reservations this year to March 7th down to 1,262 the company could be forced to cut prices to move stock.

Last week, Taylor Wimpey reported a 19% fall in forward house sales; Persimmon, Redrow and Barratt have also reported declines.

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