Bovis Homes says consumers are taking longer to decide whether to buy after interest rate rises

Higher interest rates have failed to dampen profit at Bovis Homes, which this morning announced a 10% increase in pre-tax profit to £58.4m.

However, the housebuilder warned that consumers had become more cautious since the rate rises. It said progress in its markets had been steady but not exceptional and said that buyers were taking longer to decide whether to purchase a home.

Chief executive Malcolm Harris said: “Interest rate rises have softened the market and as future movements remain uncertain, consumers are reacting cautiously.”

The group increased revenue by 3.8% to £259.9m during the period, while completions remained virtually unchanged at 1,256.

Harris said that based on trends he expected to see an increase in housing volume for 2007.

Dividends rose 75% to 17.5p per share.