Redrow has reported a “subdued” Autumn market with the value of its net private reservations in the first 18 weeks of its 2024 financial year 25% below the prior year at £384 million (2023: £515 million). Gross private reservations per outlet per week for the period were 0.49 compared to 0.63 last year with no bulk sales in either period.

Issuing a trading statement ahead of the firm’s AGM today (November 10) Redrow said that the rate of breakdown of house buying chains is elevated presently because of difficulties with mortgages lower down the chains. “This has caused our cancellation rate for the year to date to rise to 25% (2023: 22%) and resulted in a net weekly reservation rate of 0.36. This is an increase on the 0.34 for the first 10 weeks of the financial year albeit it is below the 0.38 achieved for the first half of FY2023.”

The firm’s average selling price of private reservations in the period was 2.5% lower at £471,000, compared to £483,000 in the prior year.

At today's AGM, Redrow chairman Richard Akers will say: "Following the usual summer slowdown we reported in our 2023 results announcement, the housing market has remained subdued through the Autumn. The business has had to adapt to this more difficult trading environment in terms of build rate and operating costs. However, we continue with our strategy of delivering our high quality, award winning Heritage homes to our target customers."

The group has operated from an average of 125 outlets in the period (2023: 120). Due to the slower sales market, it now expects the average number of outlets for the full financial year will be around 113 rather than the 117 guidance issued in September.

Redrow says build cost inflation continues to abate but will still be around 7% for the current financial year.

Homes turnover for the period was 30% below last year at £456 million (2023: £650 million). The total order book at November 3 is £864 million of which 66% is exchanged, compared to £1.36 billion at the same time last year with 74% exchanged.

During the 18 week period, Redrow has added 277 plots to its current land holdings (2023: 724 plots). “Due to the current economic uncertainty, we are being very selective and limiting our land buying and focusing on strategic land options,” said Redrow. “We continue to expect our results to be in the guidance range we gave in September 2023 of revenue between £1.65 billion and £1.7 billion and profit before tax of between £180 million and £200 million However, with the lower than anticipated sales rate due to the more subdued Autumn housing market they are more likely to be towards the lower end of the range.”