Housebuilder Bovis Homes has seen a rise in profit margins but has warned of “uncertainty concerning the near term direction of house prices”.

In an interim management statement published on Monday the company said it has maintained a solid sales rate since 1 July. It said prices were above internal target levels and expects the average sales price in 2010 to be about £160,000, 3% ahead of last year’s average.

As a result, it predicted that its 2010 operating margin will be above last year’s level of 6.2%.