Housebuilder Redrow sees home sales rise

By Reuters
Updated: 06:55 EDT, 4 November 2010

There were positive signs in the housing market as housebuilder Redrow said sales since July had risen.

'Regulators going to far': Redrow says average age of first time buyer now 37

However, it complained that a dearth of mortgages continues to choke new house sales, particularly to key first-time buyers.

Redrow's chairman and founder, Steve Morgan, said that underlying demand remained strong but there were very few mortgages available, pushing up the average age of a first time buyer to 37.

'Our message to the government is simple: the regulators are going too far and the medicine risks killing the patient,' Morgan said in a statement.

'We cannot have a buoyant UK economy without a healthy housing market,' he added.

House prices fell for the fourth consecutive month in October, a Hometrack survey showed, while mortgage approvals fell to their lowest levels in seven months in September, as tough credit conditions persist.

Redrow said like-for-like sales since the end of June rose 9% compared with the same period last year to £133m ($213.4m).

The average price of private reservations has risen to £174,000, slightly ahead of the company's expectations as it shifts its product mix towards larger family homes.

Rival housebuilder Bellway said last month it would pull back on its full-year sales target of 10% growth after a more muted pick-up in activity then expected in the Autumn months.

Shares in Redrow were up 3.5p (3.2%) to 112.6p, valuing the company at around £341m.