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Redrow sees house sales halved

Housebuilder Redrow said this morning it sold nearly 50 per cent fewer houses in the last six months to just over 350 units.

Sales in the first six months of the company's financial year were down 49 per cent with 853 sales achieved as compared with 1,657 in the corresponding period last year.

Since June 2008 Redrow estimates that pricing has deteriorated by the order of 10 per cent.

Forward sales for properties paid for but not yet built, were 40 per cent lower than the previous year at 1,000 homes.

Redrow last year closed two offices and slashed 500 jobs - 40 per cent of its workforce - and scrapped the second-half dividend as it reeled from the country’s worst housing slump in 30 years. Its average selling price declined 14 per cent to 140,000 pounds.

The firm said poor consumer confidence and the condition of the lending markets will mean the trading environment will continue to be extremely difficult in 2009.

"We have continued to experience pricing pressure which has been evident in all the leading house price indices and we expect pricing to remain uncertain in the coming months," Redrow said in a statement

"It remains difficult to assess when improvements in the housing market may come through."

But the firm also said its net debt at the end of December was just below £270 million pounds, lower than it expected, and that it was well-placed to meet its target of reducing its debt to less than £225 million pounds by June.

Read more:

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