Redrow sees results at lower end of expectations

LONDON (Reuters) - Housebuilder Redrow (RDW.L) said on Thursday its trading results will be at the lower end of expectations but joined other builders to suggest volumes and prices have stabilised in the last six months.

The smallest housebuilder by market value said it completed 2,113 new homes in the year to end-June against 3,925 in the previous year.

House prices, which have fallen by a fifth since the start of the downturn, are showing signs of stabilising according to recent data. Halifax, Britain's biggest mortgage lender, said on Wednesday house prices fell only 0.5 percent in June against an annual decline of 12.5 percent, the slowest since last July.

Meanwhile rival mortgage lender Nationwide said house prices rose 0.9 percent last month.

The data, albeit mixed, reinforces positive trading statements from builders Persimmon (PSN.L) on Tuesday and Barratt Development (BDEV.L) on Thursday.

But mortgage availability remains a headache for the sector.

"The most significant concern to the industry remains the chronic shortage of mortgage supply exacerbated by the widespread practice of down valuations by surveyors representing mortgage lenders," said the company.

Redrow, whose co-founder Steve Morgan regained control of the company earlier this year, said the total number of forward sales fell slightly to 1,147 homes against 1,189 last year.

(Reporting by Lorraine Turner)