Bovis warns of Housing slowdown

Bovis, a major UK housebuilder, recently gave a profits warning to show that the UK property market was cooling quite quickly.

1. The number of orders for new homes increased by only 9,000 in the first 6 months.

2. The average house price for new homes increased by only £300 to £189,000. This increase is below the rate of inflation and is an indication that house price growth may be slowing down.

3. Shares in Bovis fell, as the results were worse than expected.

The main reason given for the unexpected slowdown in prices and growth was the recent interest rate rises which are starting to affect homeowners more and more.

However, it is worth mentioning other homebuilders such as Taylor Woodrow and Barratt’s have given more promising figures.

• UK Housing Market 

Bovis shares slide 11%  at Independent