Shares in leading south east housebuilders Berkeley Group PLC (LON:BKG) and Redrow plc(LON:RDW) both rose sharply as they reassured trading remained robust.
Berkeley said activity had recovered following the Brexit vote, though was more concerned over the impact of UK government policy.
Transaction taxes are now too high, the housebuilder said, which is holding back both the second hand and new build sector in the Capital.
This may damage the London economy and eventually the UK, it added..
“Tension” between the national policy on Starter Homes and the London Mayor's ambition and the Community Infrastructure Levy also posed a significant threat to development viability, said the FTSE100 group.
Berkeley was more upbeat on the Brexit fallout, saying that after a hiatus either side of the vote in June business has since picked up again to previous levels.
This is still 20% down on last year and customers are taking longer to commit.
Redrow (LON:RDW) was more upbeat.
Profits in the year to June rose by 23% to £250mln, while orders surged 54% to £807mln. Revenues rose 20% to £1.38bn.
Steve Morgan, Redrow’s chairman, said Brexit had had no impact whatsoever and concerns over the referendum were ‘an overreaction’.
Housebuilding valuations tumbled immediately post the referendum but both companies are now almost back to their market caps pre-Brexit.
Redrow shares rose 7% to 411.4p, while Berkeley gained 3% to 2,772p.