Shares in housebuilders such as Persimmon PLC (LSE:PSN) and Barratt Redrow PLC (LSE:BTRW) rose on Tuesday after a reassuring trading update from Bellway PLC (LSE:BWY) settled nerves that might have crept in from a profit warning from smaller rival MJ Gleeson last week.
FTSE 250-listed Bellway nudged up its expectations for completed sales and average selling prices, leading to new operating profit guidance that was ahead of the consensus forecasts.
Analysts at Peel Hunt said it was a "robust" trading update.
Russ Mould at AJ Bell said: "MJ Gleeson’s woes and share price collapse last week will have done nothing to assuage the bears’ fears, but Bellway has done its best to support the bull case."
Chris Beauchamp at IG said: "After a couple of poorer updates from the UK housing sector, today’s Bellway numbers provide hope of a better period to come...
"Of course, affordability remains a challenge for many would-be home buyers, but if the BoE does cut rates in the months to come, perhaps there will be some additional uplift in activity."
Vistry Group PLC (LSE:VTY) and Bellway shares rose over 6%, while larger rivals Persimmon and Barratt Redrow climbed 4.3% and 3.7% to top the FTSE 100.
Elsewhere, Crest Nicholson PLC (LSE:CRST) rose 3.2%, Taylor Wimpey PLC (LSE:TW.) was up 3.01% and Berkeley Group Holdings PLC (LSE:BKG) 1.9%.