Housebuilders must hold their nerve and weather the fallout from Britain's decision to quit the EU to prevent a housing slowdown, say industry chiefs.

Construction firms have been warned not to 'over-react' to economic volatility, which has seen listed housebuilders taking a battering since the EU referendum vote, and have been encouraged to press ahead with investment decisions.

It comes amid calls for continued government support for housebuilders, along with local authority and housing association involvement to build council-owned and affordable homes.

Saul Humphrey, chairman of the New Anglia LEP's Building Growth board, said: 'Unfortunately the construction industry has a tendency to over-react to any economic uncertainty as some businesses, developers, funders and homeowners delay investment decisions, creating an inertia that can quickly manifest into an economic downturn.

'If we are to positively arrest this uncertainty, now is the time to invest in our critical infrastructure, from broadband to transport and in skills to affordable housing.'

And despite the falling value of sterling piling pressure on prices of materials – of which 60% are imports – Mr Humphrey said builders must not delay investment.

'We have still got a growing population, we still have people living longer and living alone rather than in big family groups. We still have a shortage of housing. Why wouldn't you keep building?' he said.

It comes as Hopkins Homes executive chairman James Hopkins praised the government's pro-building policies, and said he was determined to remain profitable during any potential Brexit slowdown.

Mr Hopkins, who founded the Woodbridge-based Top100 firm, said: 'It's a massive help for young people that the government is really recognising the need for more housing.

'We have a serious housing crisis in this country, and the only way we can meet this is by medium-sized housebuilders getting bigger.'

He said growing profits was key to securing development land, which could cost up to £2m an acre.

'You can't run a company like mine without growing if you want to build more housing.'

The Royal Institute of Chartered Surveyers predicts house prices in East Anglia will fall in the next year. They increased by 8.1%, or £16,000, on average in the year to May.

But Mr Hopkins said he would welcome house price inflation coming down to a more sustainable level of 2-4%.

'If house prices get too high that might be the start of a downward cycle,' he said. 'We want the house price to be relatively stable.'

For more on Hopkins Homes, see page 6.