A focus on family homes in the south of England has left Bovis Homes on course to deliver a "significant" increase in profits, it said today.

The Kent-based group expects to meet City profit forecasts of about £31m in 2011, up 68% on the previous year.

The group benefited from an 18% increase in private completions, while it also bought cheaper land following the downturn and focused on larger, more lucrative family homes in the south as first-time buyers struggle to get on the housing ladder.

This helped average selling prices increase 4.5% to £180,100 last year.

It added that its strong pipeline of new sites meant it was on course to deliver further "significant" improvements in profits in 2012, even though the market was expected to remain "challenging".