(Adds details, analyst notes) June 28 (Reuters) - British housebuilder Redrow Plc said it expected profit before tax for the year to come in above analysts’ current expectations as demand for new homes stayed steady. Redrow shares rose 8 percent on Tuesday to 316.45 pence at 0719 GMT on the London Stock Exchange. The company said its order book for private housing at the end of June stood at 870 million pounds ($1.15 billion), over 50 percent higher than where it stood last year. Redrow said it did not see any impact on house sales or visitor levels in the run-up to the EU referendum, and said initial feedback after Britain voted to exit the European Union showed that housing sites remained busy. “The fact remains that there is a long-term underlying demand for new homes following decades of under-supply. This chronic shortage of housing leaves market fundamentals unchanged.” The British housing market is expected to be one of the first casualties of Britain’s exit from the European Union. A 20 percent decline in property selling prices would wipe out all profits for UK housebuilders, according to Deutsche Bank. On Tuesday, Redrow said the average selling prices of private homes for the financial year were up about 10.5 pct at 328,500 pounds. Members of the Royal Institution of Chartered Surveyors polled by Reuters said prices over the next three months were expected to fall, though most still saw an increase over a 12-month horizon. ($1 = 0.7537 pounds) (Reporting by Vidya L Nathan in Bengaluru, Editing by Sunil Nair)
Redrow expects pre-tax profits for the year to be above analyst's expectations. The company said that orders for private housing stood at £870m, up more than 50% on last year. The British housing market was expected to be affected by the EU referendum vote, with Deutsche Bank forecasting that a decline in property prices would eliminate all profits for UK housebuilders. But despite the Brexit vote, Redrow reported that housing sites were still busy and that a chronic housing shortage left market fundamentals unchanged. This week the firm said the average selling price of private homes was up around 10.5% at £328,500.