Britain has a terrible shortage of housing. Basically there are too many people looking to buy a property and too little available on the market. In turn, this sky rockets prices.
People are desperate for properties. So what’s holding house builders back?
Home builder Redrow gave a clue in its results statement today. And nestled in the middle of a statement is a comment that highlighted how there is really only one reason for holding back on output (emphasis ours):
The shortage of skilled people continues to be a constraint on output, although this situation has eased over the last six months. It is essential we encourage more young people into the industry and provide them with a route to a successful career.
Redrow continues to be at the forefront of this process.
We now have 304 apprentices, graduates and trainees in the business compared to 104 three years ago and expect this number to increase in line with the growth in the Group.
Redrow posted some insane results for the six months to December 31, 2015.
First of all, the private average selling price for a Redrow property, which are outside London, increased by 11% to £300,000 ($433,167). This is above the UK national average of £288,000, according to the Office for National Statistics.
Other highlights from its financial results include:
- Group revenue rose 8% to a half year record of £603 million.
- Record first half pre-tax profit of £104 million, up 14%.
- Return on capital employed of 21% (2015: 21%).
- Interim dividend of 4p per share, double that of last year.
- Record number of employees at 1818, up almost 1200 from 2009 levels.
- Private order book up 51% at £655 million.
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