11th Nov 2013 08:12
LONDON (Alliance News) - Housebuilder Redrow PLC Monday said private reservations for the financial year to date are up 52% on last year, boosted in part by the UK government's contentious mortgage-support programme, Help to Buy.
In an interim management for July 1 to date, the housebuilder said private reservations stood at 1,400 homes, as Help to Buy reservations represented 35% of total private sales over the period.
The first phase of the Help to Buy scheme launched in April enabled buyers of newly built homes to receive a 20% equity loan from the government on top of their 5% deposit.
In September, Redrow had said the average selling price of private reservations had risen 12% to GBP227,300 and was set to rise further.
Redrow said Monday the average selling price of private reservations is now 11% ahead of the same period last year at GBP271,000. The firm attributed this to a change in geographical mix, including an increase in London sales, together with a small element of house-price inflation.
Since the start of the financial year, the company has added 2,000 plots across 15 sites to its current land bank. The total land bank now stands at just over 15,000 plots.
Redrow also has expanded the business, operating from an average of 94 outlets, up 13% on last year.
However it said: "whilst the growth in outlets represents good progress, given the size of our land bank it could be better."
Due to investment in land, Redrow said net debt increased to around GBP120 million, from GBP91 million at the end of June, representing gearing of 20%.
Redrow shares were quoted early Monday at 274.50 pence, down 0.90p.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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