Housebuilder leads the way in constructing affordable housing for first-time buyers.
Redrow is set to become the first major housebuilder in the UK to meet John Prescott’s demand to build homes that can be sold, without subsidy, for £60,000.
A new range of homes, called Debut, will be built on a site in Rugby, and will meet government targets on sustainable development, thermal and sound insulation as well as cost.
Chief executive Paul Pedley said that the design and materials choices meant that the homes would cost £55 per square foot to build – just over half the industry standard. The homes will be constructed using steel frames and a large proportion of prefabricated parts, including walls, floors and roofs.
Pedley said: "That the housing is getting out of the reach of first-time buyers is no secret. They should be a third of the market. It is an obvious opportunity to come up with a solution. It is a huge market. We are aiming to create a stepping-stone process into the housing market."
Pedley is expected to announce the plans to shareholders at tomorrow’s interim results, where he will reassure investors that profit margins on the Debut homes will equal that on Redrow’s other projects. The first batch of homes, which will sell for as little as £54,995, are due for completion in a couple of months’ time.