Bovis Homes faces rising costs as tradesmen jack up ratesComments Off on Bovis Homes faces rising costs as tradesmen jack up rates
Bovis Homes has bemoaned a lack of skilled workers and rising costs as tradesmen exploit shortages to jack up their pay rates.
The firm has seen overall build cost inflation of around 7% this year, mainly down to a lack of skilled labour.
Chief executive David Ritchie said: “This has been with us now for the best part of a couple of years and as we try to grow the business and ultimately build more houses to fuel that growth, it is a challenge for us and the sector.
“In the short term there is a lack of labour to satisfy the demand to build houses.”
He added: “It’s pretty much across all the trades. The bricklayers have been benefiting for a longer period but we’re now seeing other trades, carpenters, plumbers, electricians, all taking advantage of the market conditions.”
Bovis raised half-year profits 9% to £53.8 million and boasts record sales but the City was unimpressed, marking the FTSE 250 firm’s shares down 4%, or 54p, to 1147p.
Peel Hunt analyst Clyde Lewis said: “While it still looks like the group should hit market estimates, we think there is no scope for upgrades.
“The good news is that the land market remains as attractive as ever, with plenty of good availability.”