Broker Numis said the start of the government’s scheme in April clearly showed through in Bovis's first half as volumes rose and house prices climbed.
Interim profits rose by 19% to £18.6mln, while prices on average rose by 15% to £188,500, though the company said this also reflected a shift towards family homes in the south east.
Bovis expects average prices to rise by a tenth over the whole of 2013, adding that it has already sold 90% of the houses it expects to build and is spending heavily adding to its land bank.
Underlying profits rose 50% to £20.4mln, excluding land sale gains, while the interim dividend rises 33% to 4p.
Numis raised its profits forecast for 2013 to £76.6mln from £69.1mln and by £16mln in 2014 to £98.3mln.
Shares rose by 1% to 787p.