The outbreak of the coronavirus and subsequent construction site closures in March have had a “profound impact” on the group’s results, it said in a trading update for the year ended 28 June 2020.
Adapting to new ways of working when construction restarted in May limited the number of homes that have been completed.
Lockdown has also changed buyers’ priorities, with a greater desire for more inside and outside space, wanting to live closer to green spaces and having better home workspaces, Redrow said.
As a result, the builder is scaling back its London operations and will focus on “higher returning” regional areas of the business.
The strategic change of direction and lockdown will amount to costs that put a significant dent in profits.
Trading has been positive since lockdown eased with demand driven by Help to Buy customers, but the outlook is uncertain, according to Redrow.
In a statement, the group said: “To ensure the recovery is sustainable, and buyers intending to use the scheme have the opportunity to do so, we urge the government to approve an extension to the existing scheme beyond March next year or change the scope of the new scheme to provide access to a broader range of buyers.”
John Tutte, executive chairman, added: “This has been a challenging period for the industry and prevented the group from delivering another set of record results.
“The business has, however, demonstrated its resilience throughout the crisis and I am immensely grateful for the dedication of my colleagues, the commitment of our wider-workforce and the continuing patience of our customers as we adjust to a new way of working.
“Whilst these extraordinary times have been testing for the business, they have provided us with an opportunity to focus on our core strengths putting product, customer satisfaction and the environment at the heart of a recovery strategy to maximise shareholder returns.”
