UK’s Redrow sees 2022 results at pre-COVID levels on strong housing market

(Reuters) – British homebuilder Redrow Plc said on Friday it expects its 2022 results to be similar to levels seen before the COVID-19 pandemic two years ago, helped by a pick-up in home sales and prices.

Strong demand for spacious properties amid a shift to remote working during the pandemic, along with record-low interest rates, boosted business for housebuilders.

British house prices rose for a fourth month running in October in the latest sign of strong momentum in the housing market, mortgage lender Halifax said last week.

The FTSE-250 firm said it expected its 2022 turnover to be around 2.1 billion pounds ($2.81 billion), close to 2019 levels, adding that its order book for the 19 weeks to Nov. 5 had risen 2% from a year earlier.

Shares in Redrow were up about 2% at 638 pence in early trading.

“We entered the new financial year with a robust housing market and trading has remained strong,” Chairman Richard Akers said in a statement ahead of an annual general meeting.

Redrow, which now focuses on “heritage” suburban homes that feature designs and finishes popular in the late 19th and early 20th century, expects cost inflation to be around 5% for the current financial year.

(Reporting by Priyanshi Mandhan in Bengaluru; Editing by Ramakrishnan M.)