Redrow adapting to “subdued” Autumn market

Redrow has reported a “subdued” Autumn market with the value of its net private reservations in the first 18 weeks of its 2024 financial year 25% below the prior year at £384 million (2023: £515 million). Gross private reservations per outlet per week for the period were 0.49 compared to 0.63 last year with no bulk sales in either period.

Issuing a trading statement ahead of the firm’s AGM today (November 10) Redrow said that the rate of breakdown of house buying chains is elevated presently because of difficulties with mortgages lower down the chains. “This has caused our cancellation rate for the year to date to rise to 25% (2023: 22%) and resulted in a net weekly reservation rate of 0.36. This is an increase on the 0.34 for the first 10 weeks of the financial year albeit it is below the 0.38 achieved for the first half of FY2023.”

The firm’s average selling price of private reservations in the period was 2.5% lower at £471,000, compared to £483,000 in the prior year.

At today's AGM, Redrow chairman Richard Akers will say: "Following the usual summer slowdown we reported in our 2023 results announcement, the housing market …