Bovis stock sale further evidence of lack of housing market demand

Posted: 09 Jan 2009 14:14:45 GMT

The lack of consumer demand in the housing market has been further underscored by the sale of 379 Bovis Homes properties to the government.

In an £18 million deal, the properties in the south-west, West Midlands, east Midlands and East of England were sold at below the market value as part of an effort by Bovis to clear surplus stock.

The news comes amid reports of declining house prices and a diminishing number of mortgage approvals caused by negative economic sentiments and a lack of liquidity in the mortgage market.

Homes acquired by the government through its National Clearing Scheme will be used to provide accommodation for low-income families.

"I can confirm that these properties have been sold at a discount to market value. It was important for us to sell surplus stock while returning a positive margin," David Ritchie, chief executive of Bovis Homes, told the Independent.

Homeowners struggling to sell their homes in the current economic climate could consider selling them online as a greater number of people will be able to access the details than if they are listed with a local estate agent.

The Bank of England's monetary policy committee reduced interest rates by 0.5 per cent earlier this week in an attempt to stimulate the housing market.

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