Bovis Homes and Bellway became the latest housebuilders to confirm the uncertainty faced by the industry at the start of 2008, though the whole sector rose about 10 per cent on Friday recovering some of the sharp losses since the start of the week.

Both companies were careful to point out that the outlook for the market was unclear ahead of the all-important spring selling season, following the ramifications of the credit squeeze and the problems at embattled banking group Northern Rock.