Housebuilders Persimmon and Wilson Bowden posted record results this week.
Persimmon's pre-tax profit for the six months to 30 June was £111.8m – a rise of £43m on the same period last year. Wilson Bowden's pre-tax profit increased 30.3% to £76.6m.

Despite the economic slowdown, both companies also expect to announce strong full-year results. Wilson Bowden chairman David Wilson said: "Looking ahead, even allowing for a cooling of the housing market and the continued subdued nature of the property development sector, I believe we can deliver another full year of excellent growth."

Persimmon group chairman Duncan Davidson was upbeat about what lay ahead: "Confidence in our future performance comes from the knowledge that not only do we have an excellent forward order book, but also a well-bought land bank, a disciplined approach to build, prudent financing and good opportunities for growth within the existing portfolio."

There are finally signs the sector could be slowly getting rerated

City analyst

The companies' strong results have led to calls for the housebuilding sector to be given a higher rating by the City.

One analyst said: "The sector has been performing well for years and there are finally signs it could be slowly getting rerated. And this is against a backdrop of fears that the housing market is about to collapse."