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Hopes are growing that the property supply shortage will ease as UK housebuilding rises sharply, partly fuelled by Help to Buy.

UK construction industry output rose by 2.2% in October, fuelled by a big increase in house building, according to new data from the Office for National Statistics (ONS).

New housing rose 5.8% on September, while repairs were also up. Other types of new work declined.

The figures mark a sharp improvement from September, when construction output shrank by 0.5%.

The latest figure means that construction output is up 5.3% on the year.

Increased demand for housing is spurring construction in the housing sector, the ONS said.

"The introduction of the Help to Buy schemes has buoyed the housing market and may be contributing to relatively strong growth in house prices, which grew by 3.8% in the year to September 2013."

Housebuilder Bellway reported strong consumer demand for new homes in its first quarter to 30 November, helped by low interest rates and wider accessibility to higher-LTV mortgages.

Help to Buy mortgages accounted for 31% of reservations in the period, Bellway said.

Reservations, net of cancellations, had risen to an average of 144 per week, an increase of 43% on the same period last year.

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