Housebuilder Redrow has cheered annual income returning to pre-pandemic document ranges however cautioned over a cooling housing market amid the cost-of-living disaster.
The group mentioned the buoyant market was “moderating”, with a return to “extra regular” homebuyer demand as a result of rocketing inflation and quickly growing rates of interest.
It comes amid mounting indicators of dampening demand within the UK property market, with lenders Halifax and Nationwide each reporting slower annual worth progress in August.
We at the moment are seeing a return to a extra regular market the place demand is moderating to historic rangesMatthew Pratt
Redrow put religion in its robust ahead order e book – up 1% at £1.44 billion as of July – to assist it climate the broader financial woes whereas it hailed an “wonderful” previous yr for the group.
Outcomes confirmed underlying pre-tax income jumped 31% to £410 million within the yr to July 3, again to the all-time highs seen earlier than the pandemic struck.
Matthew Pratt, group chief govt of Redrow, mentioned: “During the last two years the market has been extremely robust with elevated demand, partly ensuing from folks’s modified priorities round working from dwelling.
“We at the moment are seeing a return to a extra regular market the place demand is moderating to historic ranges.”
It mentioned the current cooling off was not stunning “given rising inflation and better rates of interest”.
The group notched up a ten% rise in full-year revenues to £2.14 billion.
Personal sale home costs rose 9% to £428,200 on common – serving to greater than offset surging construct prices, which leapt 10% greater over the yr, although Redrow mentioned materials shortages and provide woes had been easing.
On a statutory foundation, pre-tax income fell 22% to £246 million as they had been knocked by £164 million put apart as a result of its pledge to deal with high-rise block hearth issues of safety within the wake of the Grenfell Tower tragedy.