Redrow warns FSA mortgage reforms could kill house sales

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Morgan said the Financial Services Authority's plans, which include a crackdown on riskier self-certification loans and tougher regulation of interest only-deals, could raise barriers to entry in the market. They would put home ownership even further out of reach of first-time buyers already being asked to put up 25% deposits.

"Our message to the Government is simple: the regulators are going too far and the medicine risks killing the patient," he said.

The Wolverhampton Wanderers chairman said underlying demand for homes was strong with "tens, if not hundreds, of thousands of people wanting to buy their first home".

But the mortgage famine is thwarting buyers and hitting the capacity of the housebuilding industry "at the very time when the country is in a housing crisis", he added.

Redrow pushed up average selling prices to £174,000 in the first 18 weeks of its financial year, up 16% on last year as the builder shifts products towards houses rather than flats. This drove a 9% rise in like-for-like sales but masked a 6% fall in reservations on last year.

Rival Bellway said last month that it would pull back on its full-year sales target of 10% growth after a more muted pick-up in activity then expected so far in the autumn.