Trading Statement

Redrow PLC
05 January 2006

5 January 2006



REDROW PLC - TRADING UPDATE



Redrow plc is issuing the following pre-close trading update ahead of the
publication on Tuesday 7 March 2006 of its interim results for the six months
ended 31 December 2005.



In the first half of the financial year, Redrow delivered 2,077 legal
completions (H1 2004/05: 2,111).  Overall volumes were broadly maintained as the
Group increased the contribution from its core Signature range to mitigate the
anticipated and previously highlighted second half weighting of legal
completions on In the City developments.  This increased contribution reflected
the Group's strategy of increasing its sales outlets combined with the strength
of the forward sales position.  Furthermore, it was pleasing to deliver 105
legal completions from the Group's first Debut developments at Willans Green,
Rugby and Buckshaw Village, Chorley. During December, Redrow successfully
launched its third Debut scheme at Castle Vale, Birmingham.



The analysis of legal completions by product in the six months ended 31 December
2005 was as follows:


                               H1 2005/06           H1 2004/05            Increase/             % Change
                                                                         (Decrease)
Signature                           1,820                1,665                 155                 +9.3%
In the City                           152                  446                (294)
Debut                                 105                    -                 105
Total                               2,077                2,111                 (34)                -1.6%



The average selling price of the Signature product was broadly unchanged when
compared to the previous financial year.  The average selling price for the
Group as a whole was 8% lower at approximately £163,000 (H1 2004/05: £176,700),
reflecting the impact of product and geographic mix with particular reference to
In the City developments and the introduction of lower priced Debut units.



The influence of the product mix on the average selling price combined with our
view that margins will decline in the course of this financial year will, as
previously indicated, lead to profitability in the first half being below the
level in the corresponding period last year with the Group's profits in the year
to June 2006 being more weighted towards the second half.



The autumn sales market displayed a normal seasonal upturn and sales of 1,915
units in the first half were 12% higher than in the previous year.  Sales
outlets have continued to increase with further growth in outlets expected in
the Spring of 2006.  Forward sales at 31 December 2005 were 1,816 units (Dec
2004: 1,948) and continued to represent a strong position, being ahead of
historic norms.



As Redrow enters the new calendar year, the current land bank has increased to
18,400 plots (Dec 2004: 17,500), the quality and effectiveness of which supports
the future growth of the Group.  The land market has remained competitive for
those sites capable of early conversion to a sales outlet and the strength of
the Group's land bank has enabled it to focus upon medium term opportunities
where it can best apply its skills to create value.



The first six months of the financial year have remained challenging and
competitive, with incentives continuing to be widely promoted in the industry.
Whilst overall transaction levels in the total housing market for 2005 are now
anticipated to be at their lowest level for thirty years, both recent housing
market statistics and the Group's own lead indicators including visitor and
website traffic have been encouraging.  Consumer confidence will be important in
determining the strength of the housing market in the Spring of 2006,
particularly with regard to the level of transactions, and will influence the
full year outturn.



Redrow remains well placed with its high quality landbank and product range to
benefit from an improvement in market conditions and has opportunities to
deliver organic growth in the medium term.



Enquiries:



Redrow plc                                             020 7404 5959 (5 January)
Neil Fitzsimmons, Chief Executive                      01244 520044 (thereafter)  
David Arnold, Group Finance Director



Brunswick Public Relations                                       020 7404 5959
Patrick Handley
Nina Coad




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            The company news service from the London Stock Exchange   D

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