Housebuilders Crest Nicholson and Redrow did their bit to counter the City's negative perception of the sector this week by making upbeat announcements to the stock exchange.
Crest Nicholson chairman John Matthews claimed that worries over rising interest rates were unfounded, pointing to continuing demand and restrictive planning requirements as factors that were keeping prices high.

He added that the housing market was in an unprecedented position: "The combination of demographic pressure for new homes and stringent planning requirements is creating a long-term land shortage. This has not been a feature of previous economic cycles."

Matthews said that the firm had secured £90m in borrowing through a US private placement, which would finance projects for the next 10 years.

These include a £135m, 1200-unit scheme in Attwood Green, Birmingham.

Demographics and planning requirements are creating a long-term land shortage

John Matthews, chairman, Crest Nicholson

Crest Nicholson's first-half pre-tax profit rose 14% to £25.1m; turnover jumped £35m to £265m.

In a trading statement last week, Redrow backed Crest's reading of the market. It said that the company's sales had risen 12.5% compared with this time last year, and claimed that housing volumes and demand were remaining steady.