Builders hit by slowdown
HOUSEBUILDERS Redrow and Galliford Try yesterday admitted they had suffered a dramatic slowdown in sales, blamed on the drying up of mortgage finance.
Redrow, valued at £433million and recently the subject of rumoured takeover interest from Bellway, said trading had deteriorated since its interim figures in February.
Its order book at the end of April was down 26.5 per cent on 2007 and reservations at half the level of the same period last year.
Cancellation rates, which had been running at just over 20 per cent, have suffered a “marked increase” since Easter.
Finance director David Arnold said: “The market has deteriorated more quickly than we thought. It’s nearly impossible to get a 95 to 100 per cent mortgage, while lenders’ terms have become more onerous for new homebuyers.”
Galliford Try chief executive Greg Fitzgerald said sales would fall short of expectations. Annual profits would be no less than £60million.
Redrow shares fell 22.25p to 270.5p. Galliford Try was down 2.25p to 55.75p.