Trading Statement

Redrow PLC
10 January 2008




10 January 2008


TRADING UPDATE

Redrow plc is issuing the following trading update in advance of the publication
of its half yearly results for the six months ended 31 December 2007 on Thursday
28 February 2008.

Over the last six months, conditions in the UK housing market have become
significantly more challenging, reflecting both the influence of higher interest
rates and the impact of the credit squeeze on the availability of mortgage
finance.

The Group legally completed 2,111 new homes in the period (H1 06/07: 2,214)
which was in line with our expectations in our November Interim Management
Statement ('IMS').  This included 151 legal completions in Redrow Regeneration
(H1 06/07: nil). Sales during the period were affected by the market conditions
and Group forward sales at December 2007 represented 1,694 homes (Dec 2007:
1,871).

As regards the Homes' operations, the average selling price of the 1,960 legal
completions was slightly higher than in the same period last year at
approximately £163,000 (H1 2006/07: £162,400).

We continued to exercise close control over our cost base with overhead recovery
in Redrow Homes remaining consistent with the same period last year.  However,
margins did come under pressure due to the prevailing market conditions. In
response to the softening land market, we became more selective in our land
disposal activities.  We now expect to report land sale profits circa £5m lower
than the same period last year. These factors will contribute to a greater
weakening in the Homes' operating margin than had been anticipated at the time
of our IMS.

Our Mixed Use and Regeneration activities performed slightly ahead of our
expectations and are anticipated to deliver results broadly in line with the
corresponding period in the last financial year.

We exercised increased selectivity in our acquisitions in the short term land
market and as a consequence our current land bank stood at approximately 19,900
plots as at December 2007 (Dec 2006: 21,200 plots).  Borrowing ran slightly
below anticipated levels and net debt at December 2007 was just under £240m (Dec
2006: £189.2m).

We had previously indicated our intention to exit our joint venture, Framing
Solutions and on 3 January 2008 we completed the disposal of our interest in
this business.  As a consequence, our full year results will include a post tax
loss associated with this discontinued operation of approximately £2.0m.

Consumer confidence and the availability of mortgage finance will be the key
factors in determining the strength of the critical Spring housing market. The
next two months will provide a clearer view of prospects for the financial year
but the expectation of continuing challenging market conditions appears to have
been taken into consideration by the most recent analysts' forecasts.

Our short term focus remains on implementing sales strategies appropriate to
each site and close control of cost and working capital. Whilst 2008 may
represent a more difficult market than the industry has experienced for some
time, the fundamental need in the UK to increase the supply of new homes offers
significant opportunities for Redrow into the future. We will therefore continue
to take a long term approach to land acquisition with an ongoing emphasis on
forward land and the addition of value to the development process through high
quality design which we believe will benefit shareholders in the medium term.



Enquiries:


Neil Fitzsimmons, Chief Executive                           Redrow

David Arnold, Group Finance Director                        01244 520044



Jayne Rosefield                                             Brunswick
                                                            020 7404 5959




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