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Housing restart adds 6,000 to home forecasts

Fewer than 70,000 extra new homes will be built this year despite housebuilders announcing they are looking to start building again.

Analysts had predicted that around 60,000 homes would be built this year, a figure they have now revised up by about 10 per cent.

Redrow revealed this week it was going to restart some mothballed schemes and begin new sites in a boost for the housing market.

Bovis Homes has outlined plans to build between 750 and 1,000 new homes this year while Taylor Wimpey said some of the money raised from its £510 million rights issue will be used to build.

MF Global analyst Andrew Gardner said: “We have been quite optimistic that volumes might start to pick up in the latter half of this year.

“But we are talking about more or less a 10 per cent pick up. This would add about another 6,000 new homes onto most estimates.”

Panmure Gordon’s Mark Hughes said: “hopefully if they are all going to edge up production, they do it slowly on a managed basis.”

Any new builds are expected to move away from city centre-style apartment blocks with Redrow already stating it will shift its focus to high-quality family housing.

The change in approach has come since Steve Morgan, who started Redrow in 1974, became executive chairman in March after upping his share in the firm to 29.9 per cent.

Mr Gardner added: “The move to family housing is a move back to what Redrow was traditionally known for before Steve Morgan floated the business.

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