by Trevor Sturgess

Kent-based housebuilder Bovis Homes maintained healthy sales last year but expects no return to the boom times.

In a trading update for the year ended December 31, the company, based in New Ash Green, near Gravesend, reported positive signs but warned: "The Group continues to expect trading conditions in 2010 to be subdued relative to historical levels, given ongoing economic uncertainty."

Legal completions amounted to 1,803 homes in 2009, down only slightly on the 2008 figure of 1,817.

Despite concerns, the group said the longer-term market demand and supply trends were positive.

Mortgage approvals were slowly rising but lenders continued to require high deposits, especially from first-time buyers.Of these, 1,527 were private homes, up 25 per cent on the previous year (1,223) and 276 were social and partnership homes (594).

At £154,600, the group’s average sales price in 2009 was 2.5 per cent higher than the equivalent in 2008 (£150,800). It was depressed by the falling contribution from lower-priced social and partnership homes.

The average sales price of the Group’s private homes in 2009 was £165,500 versus £181,000 in 2008.

Reservations of private homes were 82 per cent ahead of the 989 achieved in 2008. Sales turnover was £162million, plus an injection of £59m from a share placing in September.

Bovis said: "With a strong balance sheet and a clear strategy, the Group is confident of its ability to create value for its shareholders into the future."