Housebuilder Redrow (RDW) offers fresh evidence the UK is shrugging off any economic uncertainty stemming from Brexit.
The health of the housing market is seen as an indicator of consumer confidence and the FTSE 250 constituent has seen little impact from the result of 23 June’s EU referendum.
The company posts a record profit in the year to 30 June, up 23% year-on-year to £250 million, and in the first 10 weeks of its new financial year sales were 8% higher than they were a year earlier.
Last year’s success is the result of building more houses, opening more offices and the Government’s Help to Buy scheme, which has been designed to get first time buyers onto the housing ladder.
Chief executive Steve Morgan is confident of another strong year ahead. He points to a 51% rise in the total forward order book to £897 million as evidence, backed up by recommending an eye-catching 67% hike in the dividend to 10p a share.
It has not all been plain sailing for UK’s housebuilders. Berkeley (BKG), which focuses on high-end homes in London, had seen a spike in customers cancelling sales following the referendum, but notes this has now reverted to normal levels.
