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Demand for new homes to boost Bovis' annual performance

[BENGALURU] Bovis Homes Group Plc said on Tuesday it expects to report a significant improvement in first-half profit, with demand for new homes fuelling an improved annual operational and financial performance.

The homebuilder, which recently ended talks with Galliford to buy the builder's residential unit, said it delivered 1,647 completed homes in the six months ended June 30, compared with 1,580 a year earlier.

The total average selling prices rose by about 3   per cent to 270,000 pounds (S$458,910.00).

Britain's property market has been hurt by a slowdown in European growth and prospective home buyers holding out for house prices to fall further because of the country's chaotic attempts to leave the European Union.

Bovis, however, has largely focussed on cash generation by selling its non-performing assets and increasing its use of part exchange deals to return to profitability. Such deals allow buyers to trade in their homes as part payment for a new property.

"Market fundamentals remain stable and despite the ongoing uncertainty surrounding Brexit, we continue to see good demand for our new homes across all our operating regions," the company said in a statement.

Bovis builds traditional homes from two-bedroom starter properties to five-bedroom family homes with a focus on the south of the country, excluding London.