Housebuilder Bovis Homes and House Price Optimism

House prices are one thing that most house owners in the UK have on their mind a lot of late (with such high prices), House builder Bovis Homes have been talking about their house price optimism.

They feel the housing market confidence is rebuilding and the other major worry of official interest rates hitting 6% have receded, Bovis have even gone as far to say “we have hopes of a small cut within a few months”.

This is a big u-turn on their view in July that they were fearful of borrowing costs rising again, which would of created a slackening in the housing market further.

Bovis Homes back in July said that if consumer confidence continued to wane they would build fewer homes, but now Bovis is striking a much more optimistic tone.

It does seem that the housing market has steadied thanks to five rate hikes in just over a year, but if the Bank of England takes no further action and house prices continue to slow then things may stay a lot more stable.

First time buyers seem to have one of the biggest problems as I find it hard to see many being able to get on the ladder in the current housing market.

Bovis Homes have now said they expect a volume increase in 2007 of 3% and 4%, in 2008 they hope for this to increase to 8% to 10%.

What are your views on the UK housing market and the extremely high house prices?
Read more on what Bovis have to say.