House building firm Bovis are predicting a rise in profits next year, despite claims that the mortgage market will be more subdued than previously thought.
They expect they will build 30 per cent more homes during this year overall, putting them on the track for a strong growth in profits.
The firm commented that trading had returned to normal conditions, because of weaker demand over the summer, likely due to the new mortgage lending rules that came into play this year.
Prior to this however, there was a boost in their sales as a result of the Help to Buy scheme, as it helped a lot of people who couldn’t reach the first rung on the property ladder.
Compared to last year, Bovis say that their average sale prices are expected to be 10 per cent higher than last year, which will result in higher dividends for all the shareholders.
The positive messages put out by Bovis were reflected by another homebuilder, Galliford Try. It too reported that its Linden homes were set to be very profitable, and the executive chairman, Greg Fitzgerald, said that the housing market had, “Steadied to a more sustainable level.”
However, the forecasts so far have been that there will be a big hike in mortgage interest rates next year, so things are still open to change for better or for worse.
