Bovis reports 71% rise in reservations

Bovis reports 71% rise in reservations

In a trading update, Bovis Homes reported that in the 17 weeks to 1st May the group secured 638 reservations for private house sales, compared with 373 in the same period of 2008.

Despite the 71% increase, trading remains around 25% lower than during the comparable period of 2007.

The housebuilder also says it has successfully reduced its unsold finished stock level from approximately 1,000 homes at the start of the year to around 600 homes at the beginning of May.

Total reservations for 2009 legal completion (including social housing reservations) stood at 1,092 at the beginning of this month, compared with 1,383 a year earlier and the group anticipates legally completing only around 300 social homes this year, compared to approximately 600 in 2008.

While the market continues to be challenging, Bovis has been encouraged by an increase in mortgage approvals for home purchases, which according to Bank of England figures stood at 39,000 in March, up 17% on a year earlier.

However, the company remains cautious in its view of the housing market, noting the need for increased availability of mortgage finance, particularly for first-time buyers.

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