Bovis Homes today said the housing market was showing signs of returning to more normal levels as it posted a 46% increase in half yearly pre-tax profits to £67.2 million. The house builder said housing market activity in the first half of 2004 was strong, continuing the favourable conditions of the second half of 2003. But Bovis said the market had become more stable since the end of June this year following the five interest rate rises since November. It said it expected increases in house sale prices to moderate in the second half of 2004, generating price improvements "at more sustainable levels". The group said it remained confident about the future, with solid market fundamentals and good affordability. Describing its results for the six months to June 30 as "excellent", Bovis said it was raising its interim dividend by 21% to 6.4p. Chief executive Malcolm Harris said: "Based upon current market conditions, we are confident of the prospects for the group for the full year."

Monday September 06, 2004