Discretionary purchases have faltered as the uncertainty surrounding the UK’s exit from the European Union (EU) takes its toll, the builder said in a trading update.

Bovis also welcomed the government’s extension of the Help to Buy scheme and said the restrictions applicable to the scheme between 2021 and 2023 were “not unexpected”.

The initiative remains important for first-time buyers and the builder said it is not expecting any fall in use of the scheme in the final two years.

The group said it has increased its use of part exchange to around 15% of reservations.

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Pricing following expectations

Overall, the group reported a sales rate per outlet in line with 2017 at 0.51 in the period from the beginning of July to November 11.

Pricing has also followed expectations, and another “controlled and disciplined period end in December” is forecast, the builder added.

Group chief executive Greg Fitzgerald said: “The group’s improved operating performance including the transformation of our customer service and step change in build processes and quality is driving a significant improvement in our financial performance.

“We are fully sold for this year and continue to target a record year of profits for 2018.”