Bovis Homes and Persimmon show house sales growth as they try to reassure investors after Brexit vote

House builders in the county are trying to reassure investors after the Brexit vote with trading updates showing growth in house sales in the first half of the year.

Bovis Homes has increased sales by 5% to 1,601 in the first six months of 2016, with average sales prices up 15% to £255,000.

The New Ash Green-based developer has also acquired 1,267 new housing plots with planning permission in the first half of the year across 11 sites. It owns about 19,500 consented land plots in total.

A Bovis Homes development in Minster, Sheppey
A Bovis Homes development in Minster, Sheppey

The group has "modest" net debt of about £8 million, verses net cash of £5 million in December and debt of £59 million this time last year.

Its shares were up 5.5% at £6.61 at 9.44am this morning, following the announcement.

"At this time it is too early to assess the impact of the EU referendum on the UK housing market..." - Bovis Homes

“We will maintain our disciplined approach to investing in land going forward as we continue to assess the impact of the EU referendum on the UK housing market,” it said in a trading update.

“The housing market fundamentals remain strong with high demand from home buyers, good availability of affordable mortgages, good land supply and cross party political support to build more homes in the UK.

“We have traded in line with our expectations for the first six months of the year.

"At this time it is too early to assess the impact of the EU referendum on the UK housing market."

Meanwhile, shares in house builder Persimmon have rallied this week following an announcement new home completions are up 6% in the first half of the year.

Shares were down 8% to £13.32 at the close on Tuesday following the trading update and slipped to £12.89 on Wednesday before rallying this morning to £13.62 at 9.12am.

Persimmon's Brookfields development in Sheppey Way, Iwade
Persimmon's Brookfields development in Sheppey Way, Iwade

The developer, which has houses for sale in about 20 sites across Kent, has sold 7,238 homes so far in 2016, with construction due to start on another 100 developments across England, Wales and Scotland, including Bromley, Minster-on-Sea and Ebbsfleet.

The firm’s private sale reservation rate is running 4% ahead of the same period last year, while visitors to its sites is up by 8% so far.

“Negotiating an exit from the European Union could be a long and complex process and it is difficult today to predict how and over what timetable this process will evolve..." - Tom Wright, Persimmon

Persimmon Homes South East managing director Tom Wright said low borrowing costs and healthy labour market conditions “have helped support consumer confidence”.

But he acknowledged the Brexit vote had caused uncertainty for the housing industry.

He said: “It remains too soon to judge the effect that the result of the EU referendum will have on the UK new homes market.

“Negotiating an exit from the European Union could be a long and complex process and it is difficult today to predict how and over what timetable this process will evolve.

“Against this background, Persimmon has a strong balance sheet and a clear strategy, and we remain focused on building the new homes around the country that Britain needs.”

The company will report its half year results on Tuesday, August 23.

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