Work to restart on selected sites in response to stabilisation of UK housing sales
Housebuilder Redrow has said it will resume work on selected sites as the steady start to 2009 continues.
In a trading update this morning, the firm said: “With sales volumes in the housing market seeming to have stabilised, we are recommencing construction on certain developments and starting new sites from our existing landbank.”
Sales rates and visitor levels are both up on the same period last year, but Redrow said that prices remained fragile.
The statement said the market would remain challenging into 2010 as a result of reduced mortgage availability and that the government's HomeBuy Direct initiative had had “limited impact” so far.
Net debt is about £235m, which Redrow said was well within its facilities of £425m, and should fall to £225m by the end of June.
Founder Steve Morgan retook control of the company in March and is planning his next step for the business.
In a departure from the past, Redrow pointed to a move away from apartments to focus more on higher-spec traditional family housing, which it said would increase average selling prices.