Housebuilder Redrow's profits buoyed by Help to Buy

Redrow doubled its final dividend to 2 pence per share

House prices in Luton have surged at more than double the 7.5 per cent annual price growth seen across the UK generally over the year (Getty)

Housebuilder Redrow has almost doubled its annual profits in its fortieth year after sales were boosted by the government's "Help to Buy" scheme and a booming market.

The company posted a pre-tax profit of £132.6 million in the year to June 30, up from £69.4 million a year earlier after receiving a “positive impact” from the housing scheme.

Redrow doubled its final dividend to 2 pence per share.

Redrow increased the number of homes it build by 27% to 3,597 and expanded its workforce by 21% to 1,346. Revenue jumped 43% to £864.5 million.

Redrow chairman Steve Morgan said: “November 2014 marks the 40th anniversary since I founded Redrow, therefore it is quite fitting that I am able to report a significant increase in turnover and pre-tax profits, both of which are a record for the group.

“Whilst this is clear evidence of the success of our strategy it also shows the positive impact of the Government's Help to Buy Scheme.”

He added: ”Market conditions have returned to a more seasonal pattern of activity. We have substantially increased our land banks, which should see a good growth in the number of outlets during the year.

“This, combined with our strong order book, leaves me confident that the group will see another year of significant progress.”