Bovis Homes finds house prices are rising

Bovis Homes today said sales prices have been "modestly ahead" of expectations so far this year, but warned that the general election has created uncertainty in the housing market.

It said prices rose and building costs fell in the first four months of 2010. Total sales for the year to April 30 were up 11% to 1208.

Chief executive David Ritchie said: "We expect trading to continue to be stable, although the election does create uncertainty, in particular as regards the macro-economic backdrop.

"Notwithstanding this, we are selling homes in line with our targeted weekly sale rate and a continuation of this will allow the group to achieve its volume expectations for 2010."

House prices in Britain rose 1% for the second straight month in April, taking the annual rate of increase into double digits for the first time in nearly three years, figures from building society Nationwide showed last week.