(MENAFN- ProactiveInvestors)Two of the UK's leading housebuilders have repeated their optimism over the health of the housing market. North-west based Redrow (LON:RDW) said orders were at an all-time as sales smashed through the £1bn level for the first time in the year to June just ended to £1.15bn. London- based Berkeley Group (LON;BKR) also reported a strong start to the year. 'The combination of good demand fundamentals the lack of supply of good quality new homes in London and the South of England continued low interest rates and a growing economy underpin this market.' Berkeley added it expects to pay 433p in dividends by September 2018 and repeated its previous guidance of earnings of around £2bn in the three financial years to April 2018. The builder is also adding to its land bank having acquired five sites acquired since 1 May. Profits at Redrow meanwhile jumped by 53% to £204mln while shareholders were rewarded with a doubled final dividend of 4p per share. Houses built rose by 12% to 4000 some 42% more than in 2013. Pre-tax profits were also a record. Steve Morgan chairman added: 'We have entered the year with a record order book and reservations to date are running 5% ahead of last year at 0.68 sales per outlet per week. 'We have secured 820 private reservations in the first 10 weeks some 28% ahead of last year.' Broker Liberum has a target price of 483p and added that management is aiming for sales of £1.6bn by 2018 with margins of 19% implying underlying earnings of £304mln compared to its own forecast of £274mln. Hold is LIberum's view on Berkeley with a target or 3440p. Shares rose 71p today to 3451p while Redrow jumped 3% to 497p.
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