You are here: Home - News -

Bovis sets aside further £3.5m to tackle faulty homes

by:
  • 06/07/2017
  • 0
Bovis sets aside further £3.5m to tackle faulty homes
Bovis Homes has set aside a further £3.5m to deal with customer service and quality issues after homeowners complained about being sold unfinished homes by the housebuilder.

This latest provision, announced in the company’s trading update, brings total provisions to address the problems to £10.5m.

Disgruntled customers banded together to form a Facebook campaign, Bovis Homes Victims Group, raising issues such as poor plumbing, no guttering and half-finished tiling.

At the start of the year, a Times report revealed accusations that the housebuilder had offered cash bonuses of up to £3,000 to complete or move into unfinished homes by 23 December.

Around the same time, David Ritchie stepped down from the role of chief executive officer.

When the issues were brought to light, Bovis interim chief executive officer Earl Sibley said the fast pace of the ambitious growth strategy pursued by the firm over the past five years had led to operational challenges across the business.

Sibley admitted Bovis’ customer service standards had been declining for some time, resulting in the company entering 2017 with a high level of complaints after failing to deliver quality homes to its customers.

Bovis has now slowed its rate of production for this year and expects to deliver around 10% to 15% less homes to market than 2016.

In its trading statement, the company said it planned to reset the business this year and was making good progress in tackling its operational issues.

The group’s new chief executive, Greg Fitzgerald, said: “We continue to identify and implement operational improvements and I am very confident we can deliver a successful turnaround, returning Bovis Homes to being a leading UK housebuilder.”

Bovis has rejected merger bids from competitors Redrow and Galliford Try.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

  • RT @VickyHartleyMS: Review the week's top stories @mortgagesols Top 10 most read mortgage broker stories this week – 22/03/2019 - Mortgage…

Read previous post:
Whistleblowing cases fall for second year – FCA

There were 29 whistleblowing disclosures to the Financial Conduct Authority (FCA) by mortgage intermediaries in 2016/17, according to the regulator’s...

Close