Redrow profits jump 91% boosted by Help to Buy

2nd September 2014

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The housebuilder Redrow has revealed its pre-tax profits jumped by 91 per cent to £133 million in the year to June, boosted by the Government’s Help to Buy scheme.

Redrow saw  a 27 per cent rise in completions of new homes to 3,597 for the year and revenue soared by 43 per cent to £865 million, driven up by a 13 per cent increase in average selling prices to £239,500.

More than a third of Redrow’s completions were to buyers using the Help to Buy scheme, which  has so far enabled 48,000 people to purchase homes.

However the company’s chairman Steve Morgan called for the Government to consider easing restrictions on building on greenbelt land, warning that it could take up to seven years for housebuilding to reach the target of 200,000 new homes per year.

He warns that the sector is being held back by a lack of skilled labour, a shortage of bricks and by the planning system.

But there was good news for shareholders as Redrow announced a final dividend of 2p per share, double the payment it offered last year.

Redrow’s shares drifted downwards in early trading before recovering somewhat to 278p by 4pm today – a drop of just over 1 per cent from the same time yesterday.

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