Bovis Homes set to ride out recession
August 26, 2009
U.K. home builders Bovis have announced that house prices appear to be stabilizing throughout the country but say that because mortgage lending is tight the market will remain subdued.
The company managed to sell nearly 3,000 homes throughout 2007 but said that because of the drop in house prices and a cut back in construction it only managed to sell 1,817 in 2008. It says that this year it expects to match the 2008 figure this year because of a marketing push.
Bovis said that it was now looking to buy more land and the opportunities to do so right now are good.
The U.K. Council of Mortgage lenders have announced that although mortgage lending seemed to be increasing over the summer the figures are still a third down on July 2008.
Bovis has reported a £6.6million loss for the first half of the year in comparison to a £6.9 million profit a year earlier.
However analysts are positive and say that the company have a strong balance sheet and are in a very good position to ride out what remains of the recession.
Bovis said that they were selling homes, but at a lower price than before. It said that a year ago the average price of a house stood at £167,600 but that now the average selling price is £159,700.
Thanks to www.wsj.com for the above quotes, for more information on this article please visit their website.
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