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Homebuyers Undeterred by Brexit: Redrow

UK housebuilder Redrow has indicated that strong interest levels and high reservation totals from prospective homebuyers remain unchanged even in the aftermath of the Brexit vote.

Redrow chairman Steve Morgan says that build sites continue to be busy after Brexit. In a positive year-end trading statement Mr Morgan confirmed that reservations continue to be taken and annual profits upwards of £240m are expected, which are at the high end of city expectations.

His positive yet cautious projection came after Redrow shares went down by 30% after Britain voted to leave the EU.

Mr Morgan said that in the run up to the referendum, there was no adverse effect on property sales or visitor traffic. He conceded that it was too early to tell if Brexit will have an impact on future transactions, but at the moment work continues on sites and reservations are still coming in.

He added that new sites launched the weekend after the vote experienced strong reservations and long queues. Mr Morgan predicted that the demand for new housing will remain stable after decades of shortage, leaving market fundamentals unaffected by the Brexit vote.

 

Specialists in Construction Insurance

Turnover reached a landmark £1.38bn over the year. This 20% increase corresponds with a 17% rise in the number of completion, which reached 4,716. Private completions totalled 3, 882, an increase of 12%.

The average selling price of a private Redrow home reached £328,500, which is a 10% increase over the year.

Central London was expected to be hit the worst by Brexit, but Mr Morgan said that developments at Amberley Waterfront and Commercial Street had concluded and major progress has been made at Connaught Place and Holland Park Avenue, where a small amount of plots remain.

Croydon Joint Venture and other London developments also sold, in some instances exceeding management expectations.

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