House builder Redrow swings back into profit

Outspoken Redrow boss Steve Morgan took another swing at the Government's "localist" planning agenda today and claimed that councils were using the changes as an excuse to build even fewer houses.

The housebuilder has been a long-time critic of the former regime but said the changes - which see councils given a £9000 grant for every new home approved - were making things even worse.

Morgan warned: "In our experience, many local authorities are using localism as an excuse to substantially reduce housing numbers and slow down the planning process even further.

"The Government contends that the New Homes Bonus will prove to be the catalyst to encourage local authorities to speed up the planning process and approve more new homes. Unfortunately our experience on the ground does not support that view."

Morgan, who founded the business in 1974 and returned to the helm last year, moved Redrow back into the black in the six months to December 31 with pre-tax profits of £8.5 million against an £8.7 million reverse a year earlier.

The Wolverhampton Wanderers chairman has shifted the builder towards more expensive houses, which has pushed up average selling prices 16% to £170,500.

He added that it was "too early" to call the spring market but said reservations so far in 2011 were "comfortably ahead" of last year.