Tony Pidgley, managing director of housebuilder Berkeley Group, made the most of market conditions this week by snapping up £2m of shares in his own housebuilder, underlining his confidence in the long-term performance of the housing market.

Pidgley said: “I bought £2m of my own stock the other day at £13.39. It’s about the price we were during our restructuring so, from my point of view, it’s a good deal.”

In common with other housebuilders, shares in Berkeley Group, which Pidgley has run for more than 30 years, tumbled in the immediate wake of the Northern Rock crisis last week.

But a bullish Pidgley said: “We’re very niche in what we do and that makes us different from many in the sector. The wider UK economy remains steady and housing demand, for us at any rate, is still good. People still need homes.”

Shares in Berkeley have fallen since its year high of £19.50 posted in May, but are higher than its 12-month low of £12.56.

As Building went to press on Wednesday it was trading at £13.79, up from its Monday share price of £13.30.