Bovis Homes expects 10% price lift this year

Bovis Homes said it expects the price of its homes to increase by 10 per cent this year, lifting its profit margin as land bought at a discount lowers development costs.

The English homebuilder said it has planning approval for about 12,000 homes across about 80 sites acquired since the housing downturn in 2008. Both greater volume and higher prices will boost full-year revenue and return on investment, it said. Rising sales “on new, more profitable sites, will enable the group to increase profits significantly in 2013”, said chief executive David Ritchie.

The firm’s return on capital employed may rise “in the foreseeable future” to 15 per cent to 18 per cent from 10 percent. Home buyers have easier access to mortgages after the UK government introduced a programme to boost home ownership, Bovis said. – (Bloomberg)