Builder 'optimistic' about future

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Developer Redrow has started building again after suspending new build projects during the credit crunch

One of the UK's largest house builders has resumed work on nearly all of the projects it mothballed in Wales last year at the height of the recession.

Redrow has suffered heavy losses like many of its major competitors, which has seen cuts in nearly half of the workforce across the UK.

At its peak, the Flintshire firm was building more than 800 homes a year, but that was cut dramatically.

It said the market changed in the spring and work had increased since.

In south Wales, work has started on building between 30 and 350 homes at 10 sites, where more than 400 sub-contractors are being employed.

Over the next year Redrow predicts that more than 370 homes will be built from scratch or finished off at the sites it stopped work on last year.

Stuart Rowlands, Redrow's managing director in south Wales

We're feeling a whole lot more optimistic about things now

Stuart Rowlands of Redrow

The company said the new levels of activity showed an increased confidence in the market and greater affordability.

Stuart Rowlands, Redrow's managing director in south Wales, said: "It's been very difficult. This time last year construction was at a complete standstill across most of the Redrow sites.

"The sales market had collapsed and we were left with quite a bit of stock, completed property that we had to sell which meant we couldn't construct anything new.

"I think things started to improve for us at the beginning of this year, and I think it was a number of things coming into play that were helping."

Mr Rowlands cited affordability as a key factor and said the average price of a house in south Wales now was £134,000, a reduction of about £40,000 in less than 18 months.

"We're feeling a whole lot more optimistic about things now," he added.

He also called on the banks to lend more.

But added that there would be a greater focus on family homes as the market for flats was saturated.