Redrow reassured investors with a debt facility to help it through the housing downturn, as it revealed profits for the year were wiped out by land writedowns.

The housebuilder reinforced the gloom in the sector by forecasting it was “highly likely the markets will persist for some time to come” and that no recovery was expected in the mortgage market before 2010. The likelihood of a protracted slump pushed Red­row to re-arrange financing for its £223m of net debt, with a slightly reduced £450m total facility extending to 2011.