Bovis Says Home Sales Improving Quickly With Cameron Policy HelpJeffrey St.Onge
Bovis Homes Group Plc, a U.K. homebuilder, said sales are improving faster than expected this year as government initiatives to boost homebuying start to have an effect.
Net reservations rose 26 percent in the 19 weeks to May 10, the Longfield, England-based company said today in a statement. That will result in a “material increase” in home completions in the second half, it said.
“Homebuyer sentiment has been improving,” Chief Executive Officer David Ritchie said in the statement. “With the recently announced government initiatives, sales rates have increased ahead of management’s expectations.”
Prime Minister David Cameron is using homebuilding to help stimulate the economy, with the government in March announcing that it would offer an equity loan of as much as 20 percent of the value of a newly built home valued at 600,000 pounds ($913,000) or less. The Bank of England’s Funding for Lending Scheme also eased home lending the government has tried to bolster housing by simplifying planning laws.
Visitors to Bovis’s sales outlets has increased by 29 percent over last year, while selling prices and margins are also improving, the company said.
Bovis rose as much as 3 percent to 775.5 pence in London trading and was at 771 pence as of 8:17 a.m. The stock has climbed 33 percent this year, the fourth-most among U.K. homebuilders. The Bloomberg EMEA Home Builders Index has advanced 31 percent this year, led by Persimmon Plc and Barratt Developments Plc with gains of 59 percent each.