Homebuilder Redrow will resume paying dividends next year, despite reporting a huge fall in annual profit.

The company, which has developments in Gloucester, Cheltenham, Bishop's Cleeve, Stonehouse and Lydney, said it would halt investments in London and focus on its regional business and Heritage Collection.

The company, which saw revenue tumble by 37 per cent to £1.34billion, completed 4,032 in the 12 months to June 30 - compared with 6,443 the previous year.

Pre-tax profits fell from £406million to £140million.

It said the fall in completions and costs related to the closure of developments during the coronavirus pandemic were to blame for the drop in profits.

A company statement said: "We have completed substantially more homes in the first few weeks of the new financial year than during the comparable period last year while maintaining a record order book as a result of keen demand for our Heritage Collection homes."