Housebuilder Redrow sounded a positive note about the housing market today as it reported a slight drop in profits in the last half of 2010.

Redrow achieved pre-tax profits of £8.5m in the six months to the end of December, compared with £9.4m in the first half of the year.

However, the profits were a considerable improvement on the £8.7m pre-tax loss it made in the last half of 2009.

Redrow chairman Steve Morgan said he was confident the business was in good shape for further progress.

He said: “Redrow continued to make good progress in the first half of the financial year, against the backdrop of a housing market overshadowed by economic uncertainties, tax rises and government cutbacks.

“While it is still too early to call the spring market the second half has started encouragingly with reservations during the first six weeks comfortably ahead of the same period last year. 

“These figures must be treated with a degree of caution however as they undoubtedly include some “catch up” from the December freeze. 

“Looking ahead, house prices have been stable for some considerable time now and we do not share the pessimism of some commentators that there will be a major fall in house prices during the coming year.”