Holders of housebuilding stocks have had a good year. Shares in Bovis, Bellway and Redrow are all up about 40 per cent since the start of January. Persimmon shares have doubled; those of Taylor Wimpey and Barratt have nearly quadrupled.

Healthier balance sheets and the receding risk of bankruptcies are responsible for the improvement in investor sentiment towards the sector. Persimmon on Tuesday reported that net debt would be lower than expected by the end of the year, while Bovis, Bellway and Berkeley are all holding net cash.