Prowting and Gleeson this week warned the City that the housing market and consumer confidence have been hit by the terrorist attacks on the USA.
The companies, which announced results this week, said there had been a distinct fall in visitor numbers to sites and reservations after 11 September. This has confirmed analysts' fears that the housing boom may be nearing an end.

Gleeson managing director David Eyre said: "Things have obviously been quieter since the attacks. The week after there was a very serious drop in visits and reservations." He added that the fall in interest was more pronounced in the southern England.

Prowting agreed, saying there had been a 20% drop in interest. Both companies warned that it was unclear how pronounced the slowdown was or how long it would last.

Eyre said: "It appears that things may be picking up already, but the question is how long it takes to settle down and get back to normal. That will depend on the political situation."

He also said that house price inflation seemed likely to slow significantly over the next 12 months.

But Eyre maintained that the fundamentals remained strong for the housing market. He pointed to the lowest interest rates for 40 years and a shortage of supply as reasons for the market to bounce back.

Things appear to be picking up already, but the question is how long it takes to settle down

David Eyre, Gleeson

Gleeson's pre-tax profit for the year to 30 June surged 17%, from £16.1m to £18.9m. The group's turnover rose 21%, from £349.6m to £422.5m. Eyre said that the construction services market, which accounts for 70%

of the group's turnover, was still buoyant. Gleeson's order book was at record levels, with much of the work long-term.

Prowting's pre-tax profits improved 10%, from £11.9m to £13.1m for the six months to 31 August. Prowting's turnover increased 15%, from £102.5m to £117.9m.

Fellow housebuilder Bellway, which also posted results this week, said there been "no noticeable" change in reservation levels after the attacks.

It posted pre-tax profits of £101.5m for the year to 31 July, a 14% increase on the year before. Turnover rose 10%, from £634.3m to £695.7m.