LONDON, May 16 (Reuters) - British housebuilder Bovis Homes said sales rates and prices were beating management'sexpectations, becoming the latest in a string of firms in theindustry to have seen trading improve on the back of governmentschemes to help buyers.
The company said it received 989 private net reservations inthe 19 weeks to 10 May, 26 percent higher than the same periodlast year, helped also by a rise in the number of its salesoutlets. The number of visitors to its sites rose 29 percent inthe year to date compared to the same period last year.
It said sales prices achieved on reservations had beenmodestly above management's expectations and that it expectsaverage sales prices in its half year results to be materiallyahead of the prior year due to improved mix.
"Homebuyer sentiment has been improving and, with therecently announced Government initiatives, sales rates haveincreased ahead of management's expectations," Chief ExecutiveDavid Ritchie said on Thursday.
"The increased number of active sales outlets in excellentlocations...provides a great opportunity to take advantage ofthe improving market backdrop and further strengthen shareholderreturns," he said.
Bovis also said that these factors were likely to contributeto the company's return on capital improving to 10 percent for2013, compared to 7.7 percent for 2012.
In March, Britain's finance minister George Osborneannounced plans to provide and guarantee billions of pounds inloans to home buyers in a bid to boost construction and homeownership.
Bovis's rivals such as Taylor Wimpey and BarrattDevelopments have in recent weeks reported improvedsales and growing buyer confidence, driven by a surge of buyerinterest following the launch of the scheme.
The Royal Institution of Chartered Surveyors said on May 14that demand for housing in Britain rose to its highest level innearly 3-1/2 years in April and a measure of prices notched itsfirst gain since mid-2010.
Barratt Developments (BDEV)
Taylor Wimpey (TW.)
