Redrow first half sales reach £1 billion, as scores of people reassess housing needs in pandemic

Redrow has seen high demand for homes during the pandemic

David Davies/PA

10 February 2021

Redrow has posted record first half sales of £1 billion, and said demand still looks encouraging beyond March when the stamp duty holiday will have ended.

The FTSE 250 firm completed sales on 3065 homes in the six months to December 27, up from 2554.

Revenue increased 20% to £1 billion and pre-tax profit rose 11% to £174 million.

Redrow has resumed dividend payments with an interim dividend of 6p per share.

The company was hit by the first lockdown when estate agent branches closed, many construction sites shut and viewings stopped. But restrictions for the housing market were eased in May, and a stamp duty holiday was launched in July, enticing a number of buyers.

Redrow’s chief executive Matthew Pratt added that buying needs have changed during the virus crisis. He said: “Some people have changed what they want out of life, in terms of commute and where they want to live.”

Some customers are seeking space for a home office and want more outdoors space.

The stamp duty holiday is due to finish at the end of March. Pratt said the group is “selling well” for beyond that date.

Although he pointed out the success of the holiday “illustrates that high levels of stamp duty deter buyers and we continue to urge government to undertake a reform of the tax to make homes more affordable in the longer term”.

Last June Redrow announced plans to trim operations in London and focus outside the capital. But projects it still has in the capital include in Southall and Colindale.

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Redrow first half sales reach £1 billion, as scores of people reassess housing needs in pandemic

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