Housebuilder’s completions rise 7% but housebuilder says performance was held back by "complex" planning system
Redrow has blamed the planning system for holding back housing sales in the last six months.
In a statement to the stock exchange the housebuilder said that the “increasingly complex” planning system was affecting the industry’s ability to open new sales outlets.
Despite planning delay the housebuider said it had delivered 2214 completions in the first half of the financial year, a 7% increase on the previous year.
Average selling price was virtually unchanged compared to 2005/6 at £162,000. Redrow said that margins would be determined by the recovery of overhead costs.
The group said its mixed-use activities performed ahead of expectations, which helped offset its investment in Redrow Regeneration.
The housebuilder said it was on target to deliver 500 completions of its low-cost Debut range of homes. It said it had also sold all 246 homes in the first phase of its development in Barking.
It said that its forward sales position of 1,871 homes at the end of December 2006 was at a similar level to December 2005.
Redrow concluded that the housing market had stablised during 2006 and said that the market had been stronger in some areas including London.