Housebuilders Barratt Homes and Bovis Homes issued optimistic interim management statements predicting continued higher sales and profits.
Barratt said sales rates had returned to more normal levels and it had continued to see an increase in private average selling prices, up by about 4% on the same three months a year ago.
As of May 8, Barratt had forward sales of £1,046.9m compared with £1,073.3m last year.
Group chief executive of Barratt Developments Mark Clare said: “We are encouraged by the improvement in market conditions we’ve seen since the start of 2011, following a challenging autumn period.
“Our strategy for recovery is progressing well and we continue to expect a substantial increase in operating profit in our second half.”
The group has also agreed a refinancing of its debt, which provides around £1bn of committed funding over the next four years.
Bovis Homes said the market had remained stable after a good start to the year. It had achieved 566 private net reservations so far this year, compared with 505 for the same period last year.
“The group is selling homes in line with its targeted weekly sale rate and a continuation of this will allow the group to achieve its volume expectations for 2011 with increased revenue, profits and improved returns on capital.”
