Bovis reports signs of house price stabilisation

In presenting its interim results Bovis Homes has reported signs of house price stabilisation, during the second quarter of 2009.

However, the housebuilder describes the UK market as remaining “fragile” with “mortgage valuations continuing to place downward pressure on negotiated prices”.

The company completed 754 homes during the first six months of the year, compared to 851 a year earlier and 966 in the second half of 2008.

In the private housing sector the group achieved an average sale price of £160,400, compared with £164,700 in the previous six months.

The slide marks a 2.6% fall on the second half of 2008 and represents a peak-to-trough decline for the group of 22.8%.

In outlook Bovis says it remains cautious with “unemployment, increased supply of second hand homes for sale and interest rates” all presenting a threat to a sustained recovery of the market.

The group posted a pre-tax loss of £8.6 million for the first half of 2009, down from a profit of £9.5 million a year ago.

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