Redrow and McCarthy & Stone lifted by housing market jump

Kasmira Jefford
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REDROW boss Steve Morgan yesterday hit out at the country’s planning system and said the effort in obtaining detailed consent was holding it back from building more homes.

The housebuilder posted a 52 per cent jump in private reservations to 1,400 homes in the first 19 weeks of its financial year since the beginning of July. This performance was boosted by reservations through the government’s Help to Buy scheme, which represented 35 per cent of total private sales.

The number of outlets grew by 13 per cent to 94 in the period. But Morgan said that given the size of the company’s landbank, it could be better, with over a third of its landbank still waiting approval.

“The regulatory burden involved in obtaining detailed permission and clearing conditions is the biggest constraint to the industry increasing production,” Morgan said.

Separately, retirement housebuilder McCarthy & Stone posted a 21 per cent rise in revenue to £310m in the year to 31 August, thanks to a rising housing market and demand for retirement developments. Earnings rose 15 per cent to a five-year high of £46m, while apartment sales grew 11 per cent to 1,527.