At a time when we are all being told that UK PLC is not building enough new homes, the news that Bovis has had to spend a substantial sum on repairing 'new' homes is not good. It is certainly not good for Bovis and, I would suggest, it is not good for the construction industry either.
The rush to complete new homes so that plots can be 'sold' increases as the year end approaches. Unfortunately, quality can suffer too which leads (as seems to be case here) to unhappy homeowners and substantial costs being incurred.
Profits at Bovis slumped last year after the housebuilder was forced to spend millions of pounds repairing poorly-built homes and fending off takeover attempts by rivals Galliford Try and Redrow. The company was criticised after rushing the construction of some properties and offering customers cash to move into unfinished houses, some of which had plumbing and electrical problems. The scandal has so far forced it to spend £10.5m on repairs, including £3.5m in 2017. Other one-off costs last year included £4m for restructuring and £2.8m on advisory fees as it tried to see off the takeover bids.