Bovis Homes sees market 'easing'

Bovis saw an 11% drop in sales

Bovis Homes has said the housing market has shown some signs of stabilisation in the first six months of the year.

The rate of decline in house prices has eased and there has been an increase in mortgage approvals over the period, the housebuilder said.

But, like other housebuilders, Bovis said the lack of mortgage availability continued to be challenging.

The volume of sales remained at low levels and prices were still well off their peak of 2007, it said.

Bovis said its average selling price was £160,400, compared with £196,700 in the first half of 2008.

It sold 754 homes in the six months to 30 June, down from the 851 it sold in the comparable period last year.

Bovis added it hoped to end the year debt-free.

On Thursday, both Barratt Developments and Redrow blamed lack of availability of mortgages for continuing to hamper the recovery of the UK housing market.