Housebuilder Redrow's chief Steve Morgan hits out at Ed Miliband over land use threat

Redrow chairman Steve Morgan has hit out at Ed Miliband’s “use it or lose it” policy on housing land and warned of the dangers of a weak minority Government after May’s election.

Morgan, the housebuilder’s founder and major shareholder, says the firm is “apolitical” but added that the pledge by the Labour leader to take land with planning permission away from developers who refuse to build on it was “a silly thing to say”.

“Of course we’re using (land). Why would you sit on land? Land goes down as well as up and nobody I know in the industry sits on a land bank.

“We’re building on anything and everything we’ve got the ability to build on and saying anything different is just a nonsense frankly,” he said.

The Wolverhampton Wanderers chairman said Labour and Conservatives were “pro-growth” but added: “The worst thing that could happen would be a minority government and to not have strong leadership. ”

Morgan said progress had been made on planning under the Coalition but there was still a “ton of work” to do cutting red tape, particularly on changes to sites which already have permission.

“It takes almost forever just to get basic changes through.”

Redrow has benefited from a stronger housing market and cheaper mortgages, almost doubling pre-tax profits to a record £91.2 million in the second half of 2014.

Revenues rose 54% to £560.6 million as Redrow stuck to plans to invest in growing the business rather than big cash returns.

But the firm doubled the interim dividend to 2p, worth £3 million to Morgan.

Revenues from the firm’s London division more than trebled to £145 million and the company is looking to press ahead with further projects in Chiswick, the Barbican and Maida Vale.

It hopes to get planning for 2800 new homes in Colindale in the spring.