Published: 07:00, 08 July 2014
| Updated: 09:35, 08 July 2014
A house builder has completed its highest ever number of house sales in the first six months of the year as the mortgage market continues to strengthen buoyed by Help to Buy.
Bovis Homes sold 1,487 homes in the first half of 2014, up 54% on the same period last year.
The New Ash Green-based firm said average house prices were £210,000, 11% higher than 2013, driven by the upward trend in house prices.
It expects its total number of completions based on the number of reservations so far this year to rise by 44% to 3,297.
The company believes it will report an increase in profit for the first six months of the year compared to 2013 when it gives its half year results in August.
However, net debt has risen to £45m from £18m in December, after a series of land acquisitions.
The firm says it supports moves by the Bank of England to “encourage a sustainable housing market” and believes the extension of Help to Buy to 2020 will get many more first time buyers on the housing ladder.
Chief executive David Ritchie said: “Bovis Homes has delivered its highest ever number of first half year legal completions, driven by the high quality investments made during the last few years.
“This is expected to lead to excellent first half results with a material improvement on last year.
“Trading continues to be robust, further increasing our confidence in delivering both strong volume growth for 2014 and an enhanced forward sales position for 2015.
“The group achieved a record number of land investments during the first half year in what continues to be an active, but orderly land market.
“The group’s results are now benefiting from our assertive, disciplined strategy of growth through land investment and we are well positioned to deliver our 2014 targets.
“Looking further ahead we are confident that further improvements in key financial metrics can be delivered and that ongoing land investment will continue to strengthen the business and further enhance shareholder returns.”
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