Redrow's family homes lead builder's revival

The Flintshire-based group said the New Heritage Collection houses,

which have a higher average selling price at 180,000, had

been "extremely popular" since their launch in February.

Redrow, the fifth largest housebuilder in the UK by volume, said that while the new range of predominantly family homes had little impact on sales during its last financial year it expects 40 per cent of legal completions this year to be from the collection.

The firm posted profits before tax and exceptionals of 700,000 in the 12 months to June 30, its first profit in three years and a marked improvement on last year's loss of 44.2m.

The group said its new collection consisted of 40 different house

types, ranging from one-bed flats to six-bedroom detached houses.

Redrow said the traditional designs arranged space around family living, drawing inspiration from the 'Arts & Crafts movement', and the new product now features in more than 30 per cent of its outlets.

An increase in average selling price driven by the New Heritage Collection range offset a drop in reservations in the first 10 weeks of the current financial year, it added.

Founder Steven Morgan, who returned as executive chairman in March last year after it posted its worst ever annual results, said the company was now "in good shape".

Mr Morgan, who also owns football club Wolverhampton Wanderers, said the return to profit reflected a new management team and investment in brand and product innovation.

Redrow reported a boost in legal completions in the financial year, up 22 per cent from last year at 2,587, and a 9 per cent increase in the average selling price to 149,300. But Mr Morgan said he was concerned by the plight of first-time buyers, who require deposits of at least 20 per cent to secure a property.

He said: "Until this issue is resolved it will remain the major

constraint to the full recovery of the UK housing market with overall transactions set to continue at the current historically low levels."

Mr Morgan added that the average age of an unassisted first-time buyer was now 37.

The chairman also warned an "unwieldy and grossly over-bureaucratic planning system" was choking the supply of new homes in the UK.

He said Redrow spent more money last year on planning and planning-related fees than it did on bricks, and encouraged the Government to speed up proposed changes to the planning system.

The group acquired 3,281 plots in the last financial year, across 31 sites.