Redrow enters new year with "strong foundation"

Property developer Redrow has admitted today (Thursday) that it is well placed to capitalise on the market conditions of 2005 as a number of economic factors are still supportive of the housing market.

In a trading update for the six months to December 2004, Redrow said forward sales at the end of the first half totaled 1,948 units, down slightly from 2,072 a year earlier.

However, 85% of the sales are for exchanged contracts, which according to Redrow represents a "strong foundation" for the company as it enters the new year.

Redrow's focus remains on maximising selling prices and protecting margins, rather than on chasing volume. In the first half to December it completed 2,111 units compared to 1,996 in the year-earlier period.

The average selling price for the units was £175,000 against £152,700 previously.

The group said that in order to capitalise on the spring sales market, it will launch a number of new developments, with the number of outlets in the six months to June 2005 seen at least 10%higher than a year ago.