Builders Galliford Try and Redrow today voiced cautious confidence in the housing market as they positioned themselves for the recovery.

Galliford Try launched a £125.6 million right issue at 285p a share to buy land and “significantly expand” its housebuilding business in the South.

The firm also posted losses of £26.9 million for the 12 months to the end of June having made profits of £60.3 million the previous year.

Chief executive Greg Fitzgerald said: “We are encouraged by the continuation of the improvement in the housing market over the summer. We now plan to recommence our growth strategy in housebuilding.”

Redrow also reported losses of £44.2 million, its first ever trading loss, having made a profit of £65.5 million the previous year.

Founder Steve Morgan, who left the firm in 2000 but returned as chairman in March 2009, said: “All the indicators suggest recovery but I don't see it as V-shaped at all.

“There are a lot of things going on in the economy as a whole — unemployment being the major factor — suggesting that [the recovery] will be a long, hard slog.”

Morgan, who owns 29.9% of Redrow, said sales in the first 10 weeks of the new financial year were up 72% on the same period last year — albeit from a very low base.