Housebuilder says market was ‘significantly’ more challenging in last six months of 2007

Redrow has become the latest housebuilder to reveal a sharp decline in its order book.

Forward housing sales in Decemeber 2007 fell 9% to 1694 as Redrow today reported that the market had been ‘significntly more challenging over the last six months’

The impact of higher interest rates and the squeeze on credit meant that legal completions for 2007 fell 5% to 2111.

Despite the fall in sales average selling price edged up £600 to £163,000.

In a downbeat trading statement Redrow said that profits from land disposals would be £5m lower than last year.

It also reported a post-tax loss of £2m on the disposal of its share in the Framing Solutions joint venture.

Redrow said consumer confidence and availability of finance would determine whether the market would recover in the Spring selling period.

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