Mortgage dearth hurting house market
Updated on 10 July 2009
Bovis Homes has warned that lack of mortgage availability is holding back the housing market.
The housbuilder said it had seen an 11 per cent drop in completions in the six months to June 30, compared to the previous year.
Bovis said: "The continuing lack of mortgage availability, particularly for first time buyers of newly-built homes, has been challenging for the group during the first six months of 2009."
But it added: "House prices appear to be demonstrating a degree of stability at present, aided by the current low level of second hand homes being offered for sale across the housing market."
The average private house price was £160,400 in the first six months of the year, compared with £196,700 in the same period in 2008.
Bovis said it expected a policy of lower workloads would help it to end the year with cash that it intends to invest in new residential developments.
The builder has seen a 92 per cent increase in net reservations for private homes in the six months since January 1, compared to the previous year.
The firm said it had met the challenge of lower mortgage availability through competitive pricing, first-time buyer incentive schemes and an agreement with the Home and Communities Agency for additional sales to housing associations.
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