Housebuilder Redrow remains confident in the wake of the European referendum, saying it expects this year’s profit before tax to come in above analysts’ expectations.
The company’s order book for private housing at the end of June stood at £870 million, over 50 percent higher than this time last year, with the average selling price of private homes up 10 percent to £328,500. On these figures, Redrow expects 2016 profit before tax to come in above the £240 million currently expected.
Redrow also confirmed that it expects the UK housing market to be largely unaffected by a Brexit vote, with housing sites remaining “busy”:
“The fact remains that there is a long-term underlying demand for new homes following decades of under-supply. This chronic shortage of housing leaves market fundamentals unchanged.”
Shares in Redrow jumped 8 percent this morning after the statement, and are currently up 2.82 percent at 302.80 (0949GMT).
28/06/2016
