Houses now make up 90% of the properties built by Redrow
Housebuilder Redrow has seen pre-tax profit rise 80% driven by an increased focus on housebuilding instead of the development of apartment blocks.
In the last six months of 2011 the firm reported a pre-tax profit of £15.3m, compared with £8.5m in the same period in 2010. Revenue also increased from £216.1m to £232.8m over the period.
The housebuilder has increased the number of higher value properties in its mix, with houses now making up 90% of its buildings - they were only 78% in the second half of 2010.
Its average selling price also increased from £171,000 in the last six months of 2010 to £200,000 in the last six months of 2011.
The rise in price compensated for a drop in volume, which saw completions fall from 1,312 to 1,168 over the period.
Steve Morgan, chairman of Redrow, said: “While the outlook for the industry undoubtedly remains fragile there is increasing confidence in the housing market, including first time buyers. This should be helped further when the availability of 95% mortgages kicks in under the NewBuy scheme at the end of March.”
“Provided we can overcome the delays in the planning system and short of a crisis in the eurozone damaging confidence, Redrow is set to continue along our path of recovery,” he added.