Bovis sets aside another £3.5m to fix faults as it reins- in building plans

The company announced it had set aside the cash as it also disclosed it’s intention to slow down the pace of building throughout 2017 in a move that will see the firm build between 10-15 per cent fewer homes this year.

Bovis added that its profitability in the first half of the year had been affected by higher building costs and an increased level of investment to address legacy issues.

However, it said demand for new homes remained strong, and the average selling price of its homes rose 9% to £277,000.

The update follows news earlier this year that Bovis had been a takeover target for two rival giants - Galliford Try and Redrow.

However, Bovis rejected both of their bids and eventually the two suitors abandoned their takeover attempts.

Provisions made for remedial work comes after some customers complained that homes were sold unfinished, and reported plumbing and electrical faults in new properties.

Bovis has already set aside £7m to cover the issue and said the extra provision was to ensure it was “fully resourced” to complete work quickly.

It added it had made “good progress” addressing problems and was confident all legacy issues had been identified.

In February, Bovis said it would put in place a number of measures to correct the faults, including having more staff to deal with complaints, creating a homebuyers’ panel and an improved quality check process.