by business editor Trevor Sturgess

Kent-based housebuilder Bovis Homes doubled pre-tax profit last year and reported an encouraging start to 2011.

The group, based in New Ash Green, posted pre-tax profit of £18.5m in 2010, up from £7.5m in 2009.

Sales revenue edged up to £298.6m (£281.5m). The company resumed dividend, with a proposed payout of 3p for 2010.

The group said it had made significant progress with its land investment strategy, with most acquisitions in the south of England.

It said the housing market had continued to suffer in 2010 from a lack of mortgage availability for first time buyers.

The supply of new homes would not satisfy demand.

"However, buyers are likely to remain constrained by mortgage availability and continue to struggle to raise finance," it said.

"It is anticipated that sales prices will be more robust in the south of England compared to the north, which will assist the group given its southern bias of sites."

It believes prices will remain stable in 2011 and says there had been an encouraging start in the first nine weeks of the year, with reservations up 11 per cent.

David Ritchie, group chief executive, said: "The group has delivered a strong improvement in profit in 2010, driven by increased volumes, stronger sales prices and cost savings."