Redrow sees big jump in house selling prices
HOUSEBUILDER Redrow has reported a big jump in the average selling prices of its properties, and a sharp increase in private reservations.
The company, run by Wolverhampton Wanderers owner Steve Morgan, said the average price was up 12% to £235,000 in its regional business in the period from January 1. In London it also rose by 12% to £483,000.
There was a 20% rise in net reservations which the group put down to a 14% rise in the number of its “outlets” – or building sites – to 82. It has also seen the impact of the government’s Help to Buy equity loan scheme introduced earlier in the month.
The value of private net reservations for the period was up 33% at £251m and the average selling price of private legal completions was £225,000 for the financial year to date.
Despite the strong growth the company railed against the planning system. It said: “Despite the welcome improvement in the speed of obtaining planning permissions, we are still far too often experiencing frustrating delays in clearing excessive and disproportionate planning conditions.
“This unnecessary red tape remains a drag on outlet opening and a significant barrier to housing growth and delivery. Frustratingly, the number of active outlets remains at 82, the same number as at December 2012, although we still anticipate having 90 active outlets at the end of June 2013, in line with previous guidance.”
The company added: “Given the healthier outlook for housing, the increase in outlets and the benefit of the Government’s “Help to Buy” equity loan scheme, Redrow expects to show further good progress for the full year.”
