Redrow sees healthier outlook for housing

UK residential house builder Redrow reported a twenty per cent increase in net private reservations in the four months to April and said, given the healthier outlook for housing, it expects good progress for the full year.

The group operated from an average of 82 outlets in the period, up 14% on last year, which was the main driver behind a 20% rise in net private reservations to 1,009 from January 1st to April 19th 2013.

The average selling price of private reservations climbed 12% to £235,000 for the regional business and rose to £483,000 from £432,000 for London.

Redrow said the value of private net reservations for the period was up 33% at £251m and the average selling price of private legal completions was £225,000 for the financial year to date.

"Overall, the housing market continues to be stable and as a result of the improving mortgage market the cancellation rate has reduced to 15% from 17% in 2012," it said in a company statement.

Looking ahead the housebuilder added: "Given the healthier outlook for housing, the increase in outlets and the benefit of the Government's "Help to Buy" equity loan scheme, Redrow expects to show further good progress for the full year."

It expects net debt to be around £130m at the end of June 2013.

CJ