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    RDW   GB00BG11K365

REDROW PLC

(RDW)
  Report
Delayed Quote. Delayed London Stock Exchange - 06/11 11:35:29 am
659.4 GBX   +1.35%
06/08REDROW  : Richard Akers to succeed John Tutte as Non-Executive Chair
PU
05/12REDROW  : Chair Retires, Successor Appointed
MT
04/18REDROW  : launches refreshed brand
PU
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Redrow : UK gives 3.8 billion pound tax break to housing market

07/08/2020 | 12:30pm EDT
FILE PHOTO: A cyclist rides past houses on a street in Islington, London

By David Milliken

Britain will suspend purchase taxes for homes costing up to 500,000 pounds until the end of March next year in a bid to jump-start the housing market after the coronavirus lockdown, finance minister Rishi Sunak said on Wednesday.

The tax break will cost 3.8 billion pounds and apply to homes in England and Northern Ireland, making it one of the costliest measures among 30 billion pounds of extra stimulus which Sunak announced to parliament.

"Nearly nine out of ten people buying a main home this year will pay no stamp duty at all," Sunak said.

Britain's housing market ground to a halt in April and May as potential buyers were generally unable to visit homes due to lockdown restrictions, and the Bank of England reported that lenders approved a record-low number of new mortgages.

However, the impact on prices has been much more limited - with figures from mortgage lender Halifax showing just a 0.9% drop in the three months to June - and estate agents had already reported a sharp pick-up in demand before the tax cut.

Sunak said the average homebuyer would save 4,500 pounds in purchase taxes, but much of the benefit risks going to existing homeowners and property developers through a rise in prices.

When the government cut stamp duty for first-time buyers in 2017, its Office for Budget Responsibility said the tax cut was likely to feed one-for-one into higher prices, and the main gainers to be existing home-owners and developers.

The benefit will also be concentrated in London, where prices are highest. Property website Rightmove estimated the average buyer there would pay 15,000 pounds less tax, compared with a saving of just 646 pounds in northeast England.

Share prices for estate agents and property developers rose after Sunak's announcement, with the housebuilders' index up 0.5% on the day <.FTNMX3720> versus a broader 0.5% fall.

The chief executive of house-builder Redrow, Matthew Pratt, said the tax cut would help the government support employment in the construction and real estate industries.

"The measures will have a much-needed domino effect," he said.

(Additional reporting by James Davey; editing by Stephen Addison)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
REDROW PLC 1.35% 659.4 Delayed Quote.15.38%
RIGHTMOVE PLC 1.92% 646.4 Delayed Quote.-0.68%
All news about REDROW PLC
06/08REDROW  : Richard Akers to succeed John Tutte as Non-Executive Chair
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04/18REDROW  : launches refreshed brand
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More news
Financials
Sales 2021 1 822 M 2 572 M 2 572 M
Net income 2021 224 M 317 M 317 M
Net cash 2021 110 M 155 M 155 M
P/E ratio 2021 10,0x
Yield 2021 2,95%
Capitalization 2 264 M 3 194 M 3 195 M
EV / Sales 2021 1,18x
EV / Sales 2022 1,07x
Nbr of Employees 2 364
Free-Float 77,8%
Chart REDROW PLC
Duration : Period :
Redrow plc Technical Analysis Chart | MarketScreener
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Technical analysis trends REDROW PLC
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 18
Average target price 744,69 GBX
Last Close Price 659,40 GBX
Spread / Highest target 36,5%
Spread / Average Target 12,9%
Spread / Lowest Target -12,0%
EPS Revisions
Managers and Directors
NameTitle
Matthew John Pratt Group CEO, COO & Director
Barbara May Richmond Group Chief Financial Officer & Executive Director
John Frederick Tutte Non-Executive Chairman
Richard John Akers Chairman-Designate
Andrew Nicholas Hewson Senior Independent Director
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