Redrow has become the latest housebuilder to be battered by a cratering market as it posts a four per cent slide in underlying profit before tax to £395m in its full year results.
The London listed construction firm said that the number of homes it built during the full year fell from 5,436 down from 5,715, as rapidly rising mortgage rates hit the market hard.
Revenues in the firm were only slightly knocked by one per cent to £2.13bn, which the group credited to an increase in the average selling price that was already present in its order book for.
Chief of the firm, Matthew Pratt said the market almost came to a “standstill” in the second quarter of the financial year due to the “steep rise in mortgage rates as a result of political uncertainty”.
“Following several consecutive Bank of England base rate increases, we remain hopeful that, as inflation eases, we will see some stability in mortgage rates. The reduction in mortgage volatility will enable potential customers to progress the purchase of their home with financial certainty.”
Redrow joins the long list of other UK housebuilders who have seen their earnings slashed due to the volatile market.
The number of homes the company built also declined 3.9 per cent during the term to 17,206.