Redrow reservations fall by a fifth

Redrow has joined the list of housebuilders reporting falling sales and reservations, with numbers nearly a fifth lower than last year. The value of net private reservations in the first 18 weeks of the financial year was £515m, 19% below the £639m logged for the same period for 2021. Revenue per outlet per week fell from £310,000 to £238,000, while reservations per outlet per week dropped to 0.49, compared to 0.68 for the previous year. Chair Richard Akers will tell the housebuilder’s AGM today: “The housing market had returned to normal following the elevated sales rate in the previous two years. However, recent instability in financial markets has had a negative impact on the housing market and the business has had to adapt to the changing economic outlook.” During the period, Redrow added 724 plots to its landbank, taking the total to 1,495. However, it added: “Due to the current economic uncertainty, we are being selective and limiting our land buying for the time being.” Redrow said, “despite the recent reduction in sales rate”, revenue for 2023 would be £2.1bn, matching 2022’s £2.1bn. This was helped, it said, by a strong order book and the increase in private average selling price. The operating margin is predicted to dip slightly to around 18% from 19.3%.   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews