Redrow highlights slowdown in recent weeks

Despite recent slower market conditions, net private reservations in the period to 3 November were 2% higher than last year at 1,548, while the sales rate was 0.67 per outlet per week, just a touch below the 0.68 in the same period a year ago. Meanwhile, the average selling price of private reservations is £371,000, up from £352,000.

The company’s total order book, including its Croydon joint venture is currently up 3% on last year at a record high of £1.2bn.

Net debt is currently £25m versus £92m in 2017 and despite a number of major land purchases it is expected to be below £100m at the end of December 2017 and around £60m in June 2018.

Redrow said it has legally completed the first 20 apartments at its 3,000 home Colindale Gardens development in London.

Chairman Steve Morgan said he doesn’t expect last week's rate hike by the Bank of England to have any adverse impact on the market as mortgage rates by historical standards remain “low and very competitive”.

“With this strong forward sales position and balance sheet, I remain confident this will be a year of further progress for Redrow,” he said.

At 0950 GMT, the shares were down 4.6% to 612p.