Redrow reports that it experienced “long queues and strong reservations” last weekend despite the concerns over the UK vote to leave the European Union.
In a trading statement covering the financial year to the end of June released today, Redrow said: “Although it is too early to tell whether Brexit will have any effect on future sales, initial feedback is that sites remain busy, reservations continue to be taken and, indeed, we witnessed long queues and strong reservations at new sites launched last weekend. The fact remains that there is a long term underlying demand for new homes following decades of under supply. This chronic shortage of housing leaves market fundamentals unchanged.”
The firm said that the new homes market remained strong this year as the mortgage market continued to improve. The value of private reservations achieved for the year was a record £1.56 billion, up 46% on 2015 (£1.07 billion). The private order book at the end of June 2016 stands at £807 million, up more than 50% on June 2015. The sales rate for the financial year was 0.68 per week, in line with the previous year, and the number of active outlets at the year end increased to 128 (2015: 117).
Turnover for the financial year totalled a record £1.38 billion, 20% up on 2015 (£1.15 billion). The number of homes legally completed increased by 17% to 4,716 (2015: 4,022), with private completions increasing by 12% to 3,882 (2015: 3,451). The average selling price of private homes was £328,500 (2015: £297,300).
Reporting on its central London actvities, the firm said its developments at Commercial Street and Amberley Waterfront are now completed and “significant” progress has been made at Holland Park Avenue and Connaught Place, where just a handful of plots remain. All other London developments have sold either in line with or exceeding management expectations.