Housebuilder Redrow has predicted a ‘year of progress' despite a drop in sales over the last few weeks.

Speaking ahead of the company's annual general meeting last week, chairman Steve Morgan said that political and economic uncertainty had resulted in slow sales in recent weeks even though performance was strong last year.

Mr Morgan did not express concern about the recent interest rate rise affecting the housing market, explaining that mortgage rates remained low and added that Redrow's balance sheet was ‘strong'.

The company's net debt is currently £25m, compared to £92m in November last year.

Redrow, which works with local authorities and housing associations to deliver affordable housing, has recently taken on a new assignment in north-west London to build 3,000 homes.

Mr Morgan said the company was relying upon the completion of this project to make a significant contribution to its balance sheet next year.

Redrow has also engaged in a joint venture with regeneration firm Menta to deliver nearly 300 new homes in central Croydon.

The company's total predicted sales for this year is at a ‘record high' of £1.2bn, a 3% increase on this time last year.

Mr Morgan said: ‘I am pleased to report that for the first 18 weeks of the current financial year, Redrow has traded in line with expectations.

‘The sales market was buoyant in the first quarter. However, ongoing political and economic uncertainty has resulted in a slight slowdown in sales in recent weeks in comparison to a very strong sales market last year.

‘With [our] strong forward sales position and balance sheet, I remain confident this will be a year of further progress for Redrow.'

Redrow is one of the partners working with Plymouth City Council on a major redevelopment project to build nearly 1,000 new homes in Devonport. The firm is also working with Wandsworth LBC to build 1,000 new affordable and private homes, and was recently selected as a partner by Oldham MBC to construct 60 new homes.