Speaking as Redrow announced its half year results, Morgan said that the equity loan initiative, currently in place until 2021, had “undoubtedly delivered more homes at a time when we desperately need them. Taking away that principal part of the driver [of new homes delivery] wouldn’t be wise”.
During the six months to December 31 2017, just under 40% of Redrow’s private reservations were through Help to Buy. John Tutte, Redrow’s ceo, said that the initiative should continue beyond 2021 in its present guise “subject to tweaks”, including a possible lowering of the £600,000 threshold. “It would be inconceivable if it didn’t continue in one way or another”, he commented.
Redrow reported “record” half year results, with legal completions rising 14% against the equivalent period the previous year to 2,811 homes. Pre-tax profit lifted 26% to £176 million.
The group’s revenue increased 20% to £890 million, driven by the increase in legal completions, including the first 82 apartments at Colindale Gardens - Redrow’s large urban village in north London.
Redrow’s average selling price improved 9% to £330,000, which it said was chiefly a result of the ongoing growth of its southern business.
The value of private reservations increased 10% to £795 million. At the end of December 2017, Redrow’s total order book was 5% ahead of the previous year at £1.05 billion.
John Tutte said: “We have seen another really good half year with record results. We are coming into the second half with a strong order book and are pleased with the way we’re developing people with over 15% of the workforce being trainees.”
