HOUSEBUILDER Redrow announced improved sales at better-than-expected prices in a trading update for today’s annual general meeting.

The Flintshire-based firm, headed by Liverpool entrepreneur Steve Morgan, revealed that net private resevations in the first 18 weeks of the curent financial year were 47% ahead of last year, while cancellation rates have returned to normal levels.

A huge shortfall in mortgage availability due to the credit crunch had wreaked havoc within the industry, leading to plummeting sales.

But today’s update revealed that achieved prices for new housing stock are ahead of the company’s own expectations, averaging £149,000 to date, after a slight easing in mortgage availability.

And Redrow said it expects to see an increase in average selling prices as it improves its product mix towards family housing with the launch of its New Heritage collection.

It currently has 74 active sites and intends to launch several new developments early in 2010.

Redrow also revealed today that 97.2% of its £150m rights issue has been taken up which will fund the planned acquisition of Harrow Estates and its associated land bank.

The remainder of the cash generated from the new shares issue will be used to “pursue opportunities in the land market” today’s statement revealed.

“We anticipate that the land market will gradually return to more normal levels of activity over the next 12-18 months with increasing numbers of opportunities emerging.”