| Redrow sees bleak market |
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| Tuesday, 13 May 2008 | |
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Housebuilder Redrow has warned the conditions in the housing market have worsened faster than it expected. It said its reservations were down 50% on this time last year. "As at the end of April, our order book in the Homes operations was 26.5% down on last year. In the second half of our financial year, net reservations to date have been running at just under 50% below the levels secured in the same period last year," it said. "Until recently, cancellation rates have been running at just over 20% but we have experienced a marked increase since Easter. It is becoming increasingly difficult to predict accurately reservation and cancellation rates," it added. Completion this year are now forecast to be approximately 10% below its previous estimate while heavy incentives to encourage sales are hitting margins.       |
