Redrow founder Steve Morgan retires again after revival at the housebuilder

Redrow founder Steve Morgan is quitting the board of the housebuilder 10 years after returning to steer the firm out of the financial crisis.

The 65-year-old, who owns 28% of the company, took over as executive chairman in 2009 but will retire next March.

Morgan, who attempted to take Redrow private in 2012 amid frustration at an underperforming share price, will hand over to long-serving chief executive John Tutte, who becomes executive chairman.

Morgan, who founded Redrow in 1974, is worth almost £1 billion, according to the Sunday Times rich list, and is a former owner of Premier League football club Wolverhampton Wanderers. He has been an outspoken critic of the planning system and more recently the pay excesses at Persimmon, which triggered the departure of chief executive Jeff Fairburn today.

It is understood the industry veteran will concentrate on his charitable foundation after donating a £200 million chunk of his shares to it last year.

He said: “As a major shareholder I will look forward to watching the continued progress of the business under John’s leadership.”

The shake-up also sees younger blood on the board in regional boss Matthew Pratt, who becomes chief operating officer.

The shares dipped 2p to 563p.

One major shareholder said: “It’s a pity really because he is a great name and he’s done a great job. He’ll be missed.” Peel Hunt analyst Clyde Lewis said: “We don’t see any big rush to sell down his stake but expect an orderly exit in due course.”

Despite woes elsewhere in the sector Redrow held profit forecasts unchanged today.

Revenues were in line with last year in the 18 weeks to November 3 at £588 million but a slowing sales rate was “entirely due to the London market”.

It added: “The London sales market has remained subdued, affected by excessively high stamp duty tax and Brexit uncertainty.” Orders of £1.2 billion, however, are 11% up on last year.

Redrow also welcomed the extension of the Help to Buy scheme in last week’s Budget, but urged the Government to lift regional price caps, which benefit southern England over other areas.