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Gloomy outlook from Redrow

May 13 2008

A leading housebuilder painted a bleak picture of the property market today after revealing a “marked increase” in cancellation rates since Easter.

Redrow said trading conditions had deteriorated to an even greater extent than forecast in late February, with legal completions in the current financial year now likely to be 10% lower than estimates made at that time.

The UK’s seventh largest housebuilder by market value said cancellations had been running at just over 20%, but added there had been a pick up since Easter as nerves over the health of the property market intensified.

It added in a trading update: “It is becoming increasingly difficult to predict accurately reservation and cancellation rates.”