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Tuesday 13th of July 2010
January 15, 2009    

House sales plummet 50% at Redrow

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by Gill Montia
House sales plummet 50% at Redrow

Redrow is the latest UK housebuilder to report a sharp fall in sales during the second half of 2008.

The group sold 853 homes in the six months to the end of December, compared with 1,657 during the same period of 2007.

The average price of a Redrow property fell to £140,000 declining from £162,700 in the second half of 2007 and at the end of December, forward sales stood 40% lower than a year earlier.

Cost cutting measures saw the closure of two offices and the loss of 500 jobs, or 40% of the company’s workforce, during 2008.

In a trading update for the first half of its fiscal year, Redrow concluded that the trading environment will continue to be extremely difficult in 2009 because of faltering consumer confidence and the condition of the lending markets.

The group concedes that it remains difficult to assess when improvements in the housing market may come through.

To add to its woes, the value of Redrow’s land bank is falling and some analysts are predicting that developers will see values plummet by as much as 70%, from peak-to-trough.

In September of last year, the group said it was writing down £259 million on its land bank and further writedowns are expected during 2009.

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Tags: 2008, , , , landbank, , , writedowns