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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Real Estate

Brexit won’t change demand for housing, says housebuilder Redrow

The housebuilder is confident that Brexit won’t have affect market fundamentals as it tells investors it expects pre-tax profits to come in above market expectations

UK housebuilder Redrow plc (LON:RDW) says Brexit won’t alter the “chronic shortage” of housing in Britain right now.

The company believes that years of undersupply mean there is an unmet, underlying demand for new homes.

Redrow said it had so far been unaffected by the UK’s decision to leave the European Union last week.

In a trading update it said: “Although it is too early to tell whether Brexit will have any effects on future sales, initial feedback is that sites remain busy [and] reservations continue to be taken.”

The news comes as Redrow announced that it expects pre-tax profits to come in above the top end of analysts’ estimates, which is currently £240mln.

The firm said it is both selling more homes and at higher prices.

Units sold rose 17% to 4,716 (2015:4,022), while the average selling price of private homes rose to £328,000 (2015: 297,300).

Redrow’s order book at the end of June 2016 was £807mln, an increase of over 50% on last year.

Shares in the housebuilder were up 8.8p, or 3%, to 303.3p.

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