Bovis Homes sells a record number of houses in half year

Housebuilder Bovis Homes has reported a 9% rise in half yearly profits to £53.8m, with house sales hitting a record high.

The number of homes Bovis sold rose to 1,525, compared with 1,487 in same period last year.

The average private sales price rose to £264,200, 10% higher than last year, Bovis said, external.

Last week, a survey indicated that demand for houses in the UK was continuing to outstrip supply.

Chief executive David Ritchie told the BBC that the firm's average price was "reasonable" given the firm mainly operated in the south of England.

"Our sales price... is about a medium sized three-bedroom house on average, and that we feel is a reasonable price for that type of home in the south of England."

About a decade ago, a government review found the UK would need to build 250,000 homes a year to keep pace with demand.

Mr Ritchie said recently relaxed planning laws had helped the building industry to get hold of land, but that it faced a challenge in finding builders.

"In the last 12 to 18 months we've seen an improvement in the land coming through the planning process, such that we are now releasing over 200,000 plots for house building each year - that's the key starting point to deliver the capacity.

"We then do have to find enough people in the country to allow us to build those, and that will be the next challenge," he said.

Last week, the Royal Institution of Chartered Surveyors (Rics) said the government was failing to address the issue of UK housing supply.

Its latest survey, Rics said the number of homes for sale had sunk to a record low, and so demand was continuing to outstrip supply.