Questor share tip: Bovis Homes is now a hold Mark Carney, the new Bank of England Governor, has given "forward guidance" that there is likely to be no interest rate increase until 2016. However, with the economic recovery appearing to gather pace, some thought that Mr Carney's guidance may have been too generous, with a rate rise coming much sooner, pushing up mortgage rates and dampening the sector. However, the impact on share prices proved brief, with a recovery on Friday. However, all of the housebuilders are currently enjoying operational success and Bovis is no exception. In the six months to June, Bovis posted a 50pc jump in first-half profit for housing sales to £20.4m. Revenues for the year rose 17pc to £183.2m and group pre-tax profits rose 19pc to £18.6m. Bovis secured 1,712 private reservations in the 32 weeks to August 9, a 43pc increase on last year. This is an improvement on the previous figure reported in July, which showed an increase of 40pc in the year to date. "The positive trading position, combined with an increasing proportion of legal completions on new, more profitable sites, will enable the group to increase profits significantly in 2013 in line with its expectations," said David Ritchie, chief executive. In the first six months of the year Bovis's margin on homes sold rose 2.4 percentage points to 11.1pc. The interim dividend was increased by a third to 4p and it will be paid on November 22. The prospective yield is now 1.6pc. The UK housing market is continuing its recovery and the group expects to post a return on capital for the full year of at least 10pc. This is stronger guidance than previously, when Bovis said the figure would be "approaching" 10pc, then "circa" 10pc. Trading on a 2013 price earnings multiple of 18.5, falling to 13.6 next year, the shares are now a hold.