Redrow defies housing market and Brexit fears with '˜exceptional' results

File photo of a Redrow homes development in Kent, as the housebuilder hailed a record set of results, defying fears over a housing market slowdown and a volatile political and economic environment. PRESS ASSOCIATION Photo. Issue date: Tuesday September 5, 2017. Photo: Gareth Fuller/PA Wire

The firm saw revenue rise 20% to £1.66 billion in the year to June 30, while pre-tax profit rose 26% to £315 million.

Redrow saw completions rise 15% to 5,416 in the period and the average selling price of its homes increased 7% to £309,800.

Chief executive John Tutte said: “These exceptional results were achieved against an uncertain political and economic backdrop as a result of Brexit and also an ongoing requirement to manage an industry-wide shortage of skills to meet our build programmes.”

The results come amid mounting signs that the wider property market is cooling amid sluggish economic growth.

Recent figures from Nationwide Building Society showed house prices dropped by 0.1% in August, signalling that pressure on household finances from Brexit-fuelled inflation is hitting buyer confidence.

Mr Tutte said that while Redrow’s strategy is to continue to grow the business, the rate of growth is expected to “moderate over time”.

Nevertheless, Redrow has increased its medium-term guidance and now expects turnover in 2020 of circa £2.2 billion and pre-tax profit of £430 million.

Chairman Steve Morgan added: “Demand in the new homes market remains robust and we have not seen any impact from recent domestic and international political events.”