Redrow post profit after selling more new homes

New homes developer Redrow Plc have reported a first-half profit after selling more new homes for higher prices.

Redrow Homes, under the leadership of chairman Steve Morgan, have changed the type of new homes they build, after launching the New Heritage Collection, which has proved popular with new home buyers.

The company sold 1,312 new build homes in the period, compared with 1,266 new homes a year earlier. Average selling prices for private homes increased 16 per cent to £170,500.

Net income for the six months through December was £3.5m, compared with a loss of £6.3m loss a year earlier, Redrow announced today in a statement. Revenue increased 15% to £216.1m.

"Customers are more confident than at any time since I have been back," Morgan told the press. "People have had enough of doom and gloom."

Morgan said that demand for new homes will continue to improve, with home reservations in the first six weeks of 2011 up by in excess of 10% compared to the same period last year.

However, he has slammed the shortage of high loan to value mortgages preventing many first time buyers from being able to buy a new home.