Bovis Homes will open new sites

In contrast to Persimmon, Bovis Homes has not felt enough of a financial squeeze for it to call a halt to the opening of new housebuilding sites.

A statement this morning from Bovis said: “The group anticipates opening a number of new sales outlets over the next few months.”

Bovis Homes reports that although reservations are 30% down this year so far, compared with the start of 2007, gross margins have been “maintained at high levels”.

The group said: “Reservations achieved to date for 2008 total 1,382 homes as compared with 1,979 reservations at the same time in 2007, a decrease of 30%.

“If the recent more difficult conditions persist, and the level of reservations, allied with the increase in cancellation rates, seen in recent weeks does not improve, the group will not achieve a volume of legal completions in 2008 that falls within the range of the board’s expectations at the time of the preliminary results announcement”.

Despite the short-term upheaval, Bovis believes the longer-term future for the housing market is strong.

“The underlying shortage of houses in the UK, as evidenced by the government’s ambition to deliver three million new homes by 2020, will underpin housing market activity in the future.”

Bovis said that it carries modest gearing and has a strong consented landbank.