Redrow ploughs ahead despite sluggish market

Housebuilder Redrow said it made steady progress in the first 17 weeks of the current financial year with the value of like for like private home reservations up 14% on the same period last year.

"The housing market continues to be challenging; yet despite the seemingly endless negative economic news, underlying demand for new homes remains strong and is anticipated to increase. This should come as no surprise given the UK's chronic under-supply of new housing, spanning many years," said Redrow in a statement ahead of its AGM meeting later today.

Reservations to date are 1% ahead of last year, averaging 39 homes per week, equal to 0.54 sales per outlet per week. Cancellation rates have remained steady at just over 18%, Redrow said.

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The average price of private reservations to date is 13% ahead of the same period last year at £197,000. The price reflects a shift in product mix to the group's New Heritage Collection, Redrow explained. Underlying prices remained stable.

Redrow said the existing planning environment remains 'frustratingly slow and costly.' Redrow currently has 30 live planning applications for 5,219 plots, which are either delayed beyond the 13-week statutory determination period or subject to appeal.

Commenting on the economic environment Redrow added, "We are living in times of great economic uncertainty, which weighs heavily on the market. Yet despite the poor economic news there remains strong underlying demand for new homes."

"We have a strong balance sheet and an excellent product in the New Heritage Collection and as such we remain well placed to meet the challenges ahead."