Bovis brushes off Brexit gloom with sales increase

Housebuilder Bovis Homes has brushed off gloom in the property sector to report higher sales in what the company called a fundamentally “strong” market.

In a statement ahead of its annual general meeting, the firm unveiled a 17% increase in private sales per site per week.

The company said: “The current market fundamentals remain strong and we continue to see good levels of demand for new homes across all of our operating regions.

“We have a strong forward sales position and are confident of delivering completions in line with our expectations for the year.”

The statement contrasted with updates from fellow housebuilders in recent months, which have flagged Brexit uncertainty in the market.

Bovis itself even warned in November that the lack of clarity was holding some buyers back.

Analysts at Shore Capital said the firm had likely experienced better conditions than its peers due to its efforts to rebuild its reputation after a scandal over shoddy homes.

“While Bovis reports that the market is ‘strong’ this is not the same view expressed by other house builders where the market is seen as being stable on the demand side and weakening on prices,” analyst Robin Hardy said.

“It must be borne in mind that Bovis is still on a journey of re-build and repair and that this is likely to enable it to fair better than the rest of the sector. So, the bullish comments relate to this rather than any suggestion that the new homes or the wider housing markets are on the up.”