Redrow (RDW)

Sector:

Household Goods

Index:

FTSE 250

687.50p
   
  • Change Today:
    -9.50p
  • 52 Week High: 739.00p
  • 52 Week Low: 427.40p
  • Currency: UK Pounds
  • Shares Issued: 330.77m
  • Volume: 6,196,680
  • Market Cap: £2,274.05m
  • RiskGrade: 176

Govt said to have dropped demands on housebuilders for £4bn cladding fund

By Michele Maatouk

Date: Monday 04 Apr 2022

LONDON (ShareCast) - (Sharecast News) - Shares of London-listed housebuilders rallied on Monday following a report the government is dropping its demand for them to contribute towards a £4bn cladding remediation fund.
The government is embroiled in discussions with the Home Builders Federation (HBF) over a plan to remediate dangerous cladding on buildings of between 11 metres and 18 metres high. Housing secretary Michael Gove had set a deadline of Thursday 31 March for an agreement to be made.

Construction News said it was understood the two parties are "nearly there" in agreeing on terms, but that the £4bn remediation fund is not being discussed at the moment. Instead, housebuilders would pledge to remediate the medium-rise buildings they have built over the last 30 years and not apply to the Building Safety Fund (BSF) for the funding.

That would free up the remainder of the £5.1bn BSF to be used to remediate buildings higher than 18 metres. It was understood that the remediation fund will instead be discussed at a later date, during the next round of negotiations between government and industry expected to take place later in the year.

The news sent housebuilding shares surging. At 1110 BST, Persimmon was up 4.8% and Barratt Developments was 4.5% higher, while Berkeley and Taylor Wimpey were both 3.8% firmer.

Bellway, Redrow and Crest Nicholson rose 4.5%, 3.9% and 3.3%, respectively.

AJ Bell financial analyst Danni Hewson said: "Housebuilders have been in the doldrums since the start of the year despite a supercharged housing market as investors priced in the cost of making repairs. The deal on the table would require companies to deal with issues on any medium rise building they've built over the last thirty years, but additional funding talks would be put off until later in the year.

"The long running dispute about who should foot the bill to deal with fire safety issues has been contentious and housebuilders will need to act quickly to show they're serious about making things right."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Redrow Market Data

Currency UK Pounds
Share Price 687.50p
Change Today -9.50p
% Change -1.36 %
52 Week High 739.00p
52 Week Low 427.40p
Volume 6,196,680
Shares Issued 330.77m
Market Cap £2,274.05m
RiskGrade 176

Redrow Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value Not Available
Price Trend
83.97% above the market average83.97% above the market average83.97% above the market average83.97% above the market average83.97% above the market average
68.00% above the sector average68.00% above the sector average68.00% above the sector average68.00% above the sector average68.00% above the sector average
Income Not Available
Growth
15.14% above the market average15.14% above the market average15.14% above the market average15.14% above the market average15.14% above the market average
76.00% above the sector average76.00% above the sector average76.00% above the sector average76.00% above the sector average76.00% above the sector average

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Neutral 9
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