Sales surge set to see Redrow in profit

Housebuilder Redrow yesterday predicted a return to profit for the first time since 2007 as the recovery in the property market picks up pace.

The group, which saw losses of 8.7m in the six months to December 31, is forecasting a surge in sales which will see it move out of the red in the second half of its year.

Flintshire-based Redrow is expecting to complete more than 2,500 house sales this year – up on the 2,113 reported in its last financial year.

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It said average prices of private houses had increased year-on-year and against the first half, while activity in the land market had also seen a "noticeable increase", according to Redrow.

However, the company said that despite a recent revival, the UK property market was not out of the woods yet.

Its comments come as property intelligence firm Hometrack reported a continued slowdown in momentum in the property market during April, with sellers outstripping buyers and prices ahead by just 0.2 per cent during the month, following increases of 0.3 per cent in each of the previous two months.

Redrow said: "We have been encouraged by sales activity since the start of the calendar year with sales rates per outlet comfortably ahead of the same period last year.

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"Weekly visitor levels and cancellation rates have remained reasonably consistent throughout the period."

Redrow is hoping the launch of its New Heritage Collection of family homes will help drive sales.