Redrow has cut its guidance for 2023 revenue, as it reported an increase in the average selling price but a drop in net private reservations.

In a statement ahead of its annual general meeting, the housebuilder said the value of net private reservations in the first 18 weeks of the financial year was down 19% on the previous year at £515m.

The average selling price for Redrow’s private reservations was up 6.9% to £483,000 on the year during the period. The company put this down its Heritage range of “high-quality well-designed homes”, combined with geographical and product mix and general house price inflation.

For the year to end-June 2023, the housebuilder now expects revenue of circa £2.1bn, the same as the past year, down from its guidance of £2.3-2.4bn in September.

Operating margin is expected to fall to around 18% from 19.3%, while revenue per outlet was down 23% to £238,000 and private reservations slumped 28% to 0.49 per outlet per week from 0.68 a year earlier.

The forward order book has shrunk to £1.36bn from £1.49bn a year ago and £1.44bn in early July this year.

Chairman Richard Akers said: “We entered the new financial year in a strong position with a record order book of £1.44bn. The housing market had returned to normal following the elevated sales rate in the previous two years.

“However, recent instability in financial markets has had a negative impact on the housing market and the business has had to adapt to the changing economic outlook.”

Citing the current economic uncertainty, the group said it was “being selective and limiting our land buying for the time being”, having added 724 plots to take its holdings to just under 1,500 plots.

There was net cash of £182m and the board expects to still have more than £150m by the end of June 2023.

Redrow’s latest update follows rather bleak recent warnings from Persimmon and Taylor Wimpey.