Bovis Homes, one of the UK’s largest housebuilders, says that consumer confidence has been hit by the troubled market, leading to poor sales and expected falling prices.
Hesitance
The company said the average price for one of its properties was likely to fall three percent to £178,000 from £184,000 in 2006, a result of customers delaying their entry onto the property ladder
In a trading update released yesterday, Bovis said that, “recent events in the financial markets have adversely affected consumer confidence, resulting in sales being lower than anticipated during the key autumn selling period.
“Looking ahead, the mid and longer term supply and demand dynamic remains very attractive in the housing market but, in the short term, sales will reflect this recent decline in consumer confidence, in particular as it relates to major consumer purchases.”
Leveling out
Despite all this, the housebuilder still expects a one percent increase in the average property price during the year. For up to two years, it expects house prices to remain more or less flat.
Shares in Bovis rose 7p to 650p.
November 7, 2007
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