by business editor Trevor Sturgess

Kent-based housebuilder Bovis Homes has reported market improvement and stronger sales.

The group announced today (18) that sales of private homes and social housing since the start of the year were 150 up (2,178) up on the same period a year ago. Private reservations (1,488) were 83 per cent ahead of last year.

Bovis, which has its headquarters in New Ash Green, near Gravesend, said it had seen "further signs of an improving market backdrop."

Prices had risen, helped by the low levels of second hand stock for sale. "The Group itself has experienced a modest imporvement in underlying private sales prices for reservations taken since its June half year," it said.

Mortgage approvals had grown from a low base but the mortgage market "remains difficult to access for first-time buyers and other buyers requiring higher loan-to-value multiples."

Bovis reported £89 million of net cash which made it well-positioned to buy land. It was also achieving cost savings in building costs by re-specifying materials and negotiating new labour costs.

The group expects the present situation to continue into 2010, with stable prices and further modest growth in mortgage availability. The Group was well placed to create value for shareholders, it said.

Ed Woolfitt, head of trading at Galvan, said it was a bullish statement from Bovis and he expected shares to "rapidly return to the year highs at 560p and more."

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