The housebuilder’s profits are booming, but there’s still a bit more to go for, says Phil Oakley.
Britain’s housing market is in rude health. In London and the southeast of England it is positively booming. So it’s not surprising that housebuilding companies, such as Bovis, are reporting stonking increases in their profits and dividends.
The government’s Help To Buy scheme (which provides taxpayer guarantees on mortgages to encourage banks to lend) is effectively underwriting a significant chunk of demand for builders of new houses, and this does not look like it will end anytime soon.
However, the [...]