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Bovis Homes has reported a ten per cent increase in first-half pre-tax profits, with the housebuilder expecting to sell more homes this year.

In a statement today the company confirmed that its pre-tax profits for the six months to the end of June climbed to £58.4 million.

The increase came despite a backdrop of rising interest rates, which Bovis said had resulted in signs that the rate of house-price growth was slowing.

Last week the Bank of England announced that it was keeping the UK's benchmark rate of interest on hold for the second month in a row, at 5.75 per cent. However monetary policymakers had previously raised interest rates five times in the year to August in a bid to keep inflation under control.

Bovis chief executive Malcolm Harris said: "Interest rate rises have softened the market and as future movements remain uncertain, consumers are reacting cautiously."

But remaining upbeat about the company's future, he stressed: "The group continues to anticipate an increase in volume ahead of that delivered in 2006."

The volume of legal completions reported by Bovis remained essentially flat over the first six months of the year, at 1,256 homes. That compared to 1,262 for the same period in 2006.

Rising profits from land sales boosted Bovis' performance in the wake of the housing market slowdown, with the company reporting that such sales totalled £19.1 million in the first half, up from £10.2 million for the corresponding period in the previous year.

Looking ahead Bovis said that it was confident in its ability to procure and promote strategic land at a discount to market and to build and sell mid-market homes at a competitive price.