Bloomberg News

Bovis Says 2011 Home Prices Increased on Sales of Family Houses

January 16, 2012

Jan. 16 (Bloomberg) -- Bovis Homes Group Plc, the U.K.’s second-smallest homebuilder by market value, said it sold more homes at higher prices last year after customers purchased a greater proportion of single-family houses than apartments.

Bovis forecast higher sales volumes, rising prices and a “significant” profit increase for this year on widening margins, the Longfield, England-based company said in a statement today.

Homebuilders are boosting profit margins by focusing more on houses and building on discounted land bought during the recession that ended in 2009. The U.K. government is trying to bolster homebuilding with investment and mortgage guarantees. From the second quarter, those seeking a new home may be able to get a mortgage with a down payment of as little as 5 percent.

“Based on current market conditions continuing, the group can deliver significantly increased profit and, coupled with improving efficiency of capital employed, a stronger return on capital employed in 2012 and beyond,” Chief Executive Officer David Ritchie said in the statement.

Bovis sold 2,045 homes for the 12 months to Dec. 31, compared with 1,901, a year earlier. The average selling price rose 1 percent to 162,400 pounds ($248,000) after building fewer apartments in favor of single family homes.

--Editors: Ross Larsen, Andrew Blackman.

To contact the reporter on this story: Chris Spillane in London at cspillane3@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.


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