Housebuilder's trading update reveals 14% in average sale price over the year

In a trading update released today, housebuilder Redrow warned that its trading results were at the 鈥渓ower end of analyst's estimates鈥�.

It reported a 14% fall in its average sales price over the year, from 拢156,900 to 拢137,500, with completions falling to 2,113 homes in the year ending 30 June, down from 3,925 a year earlier.

The housebuilder said it pinned new hopes on a new product 鈥渨ith attractive external design, enhanced specification and with internal layouts to suit modern day living鈥�, due out in the autumn.

Redrow homes
Redrow completed 2,113 homes, down from 3,925 a year earlier

This, said the firm: 鈥淭he new range is expected to return Redrow to its former premium branding position and over time will strengthen average selling prices.鈥�

The housebuilder warned of the threat to the housing market of a continued shortage of finance for homebuyers. It said that the drought in the mortgage market was "without doubt... a major obstacle to the recovery of the housing market".

Redrow added: "We are of the view that resolving this issue can play a significant role in a recovery of the economy as a whole."

Galliford Try and Barratt Developments also released trading updates today, showing indications of stabilisation in the market.

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