Housebuilder reports strong trading in the first half of 2016

Bovis Homes has said it will respond to the EU referendum result with “restraint” and “discipline” in the short term, but is convinced the future remains rosy for housebuilders.

In a trading statement, the housebuilder said it was “too early to assess the impact” of Brexit on the housing market, but the firm said it was “well positioned to take further advantage of a fundamentally positive land market at the right time”.

The firm added: “The housing market fundamentals remain strong with high demand from home buyers, good availability of affordable mortgages, good land supply and cross party political support to build more homes in the UK.”

Like many housebuilders, Bovis Homes’ share price has been hammered since the EU referendum. It will open at £6.27 today, down 39% from £10.24 at the end of polling day on Thursday 23 June.

Over the first half of 2016, legal completions increased to 1,601, up from 1,521, while its average sale price increased 15% to £255,000, up from £222,000, in part reflecting a shift towards delivering more family homes in the south of England.

Bovis said it experienced a “strong” Spring selling season, before a seasonal reduction in the summer. Since June, the firm said it had continued to “see a healthy level of interest on our active sites”.