Housebuilder's trading update reveals 14% in average sale price over the year

In a trading update released today, housebuilder Redrow warned that its trading results were at the “lower end of analyst's estimates”.

It reported a 14% fall in its average sales price over the year, from £156,900 to £137,500, with completions falling to 2,113 homes in the year ending 30 June, down from 3,925 a year earlier.

The housebuilder said it pinned new hopes on a new product “with attractive external design, enhanced specification and with internal layouts to suit modern day living”, due out in the autumn.

Redrow homes
Redrow completed 2,113 homes, down from 3,925 a year earlier

This, said the firm: “The new range is expected to return Redrow to its former premium branding position and over time will strengthen average selling prices.”

The housebuilder warned of the threat to the housing market of a continued shortage of finance for homebuyers. It said that the drought in the mortgage market was "without doubt... a major obstacle to the recovery of the housing market".

Redrow added: "We are of the view that resolving this issue can play a significant role in a recovery of the economy as a whole."

Galliford Try and Barratt Developments also released trading updates today, showing indications of stabilisation in the market.