Bovis Homes has claimed there is definitely a north-south divide in the housing market after figures revealed that they are selling twice as many homes in the South compared with the North and Midlands. This news echoes other builders and property groups who are also reporting a massive divide between the two areas.
The house-builders have also announced that they will be opening more sites in the South where the market remains active. Bovis currently build new properties which will be covered by cheap home insurance as far North as the M62 motorway but despite reporting an increase in half year revenues and profits, it is the group’s Southern outlets that are delivering better sales.
Chief Executive David Ritchie said: “In terms of the facts of the market I’m selling twice as many in the South as I’m in the Midlands and the North, and therefore if I’m going to put money into a new site it’s likely I’m going to put it into the South, rather than the North. When you get the right location in the North it still works. We’ve a long-standing history in the North, but it’s more difficult for us.”
The group increased their land holdings to 18,000 which is up 1,000 on the previous year. They have 1,200 plots in the North but have no plans to increase this or get house insurance quotes until the housing climate changes. The comments from Bovis will only increase the concerns of house-builders throughout the United Kingdom who expect the housing market to remain the same for at least the next twelve months. About 20 % of the Bovis volume was from shared equity sales to ease the burden on first-time buyers. However, they hope over time to change this as the company don’t envisage being a lender as well as a builder long term. As with most other players in the sector they hope the banks will help all builders by lending at higher loan-to-value.