Redrow has reported delivering a 7% increase in legal completions to 2,214, buoyed by the sale of twice as many starter homes.
But the Bank of England’s quarter point interest rise reinforced the company’s caution about the prospects for the housing market.
It maintained its full-year operating margin expectations.
However, the recovery of overhead costs would influence first-half margins, it said.
The housebuilder also expressed frustrations with the planning regime. The shares closed down 22p at 668.5p.
Bellway will release a trading statement and hold its AGM today. Angus Rigby, chief executive of TD Waterhouse, takes a look at the stock in The Daily Telegraph’s City Trader column.
References: Financial Times 12/01/07 page 20, The Daily Telegraph 12/01/07 page B6 (DataBase), page B7 (City Trader)
