Redrow profit jumps on virus-led suburban housing boom, resumes dividend

British homebuilder Redrow (LON:RDW) Plc reported an 11% rise in first-half profit on Wednesday and resumed dividend payment, as demand jumped for its spacious suburban homes in the wake of COVID-19 pandemic.

House building has been a bright spot for Britain’s economy during the coronavirus criris as buyers benefit from low interest rates and a temporary tax break, while appetite for bigger homes suited for remote working has also driven demand.

“Demand in the regions for our Heritage homes has been particularly high as more buyers reflect on their lockdown

experiences and prioritise space in their homes and access to green areas,” the company said in a statement, adding that it was now over 95% forward sold for the current financial year.

The company, which started scaling back its London operations last year to focus on high-return regional businesses, said pre-tax profit rose to 174 million pounds ($240.36 million) in the six months to Dec. 27. It, however, didn’t specify the share of London and regional businesses separetely.

The FTSE 250 firm, which now focuses on ‘Heritage Collection’ suburban homes that feature designs and finishes popular in the late 19th and early 20th century, declared an interim dividend of 6 cents per share.

Redrow said total order book as of December-end stood at a record 1.3 billion pounds, up from 1.2 billion pounds a year earlier.

($1 = 0.7239 pounds)