Hopes are growing that the UK property shortage will ease as the construction industry has posted its best period of growth in a decade.
The construction sector grew 5.8% in the 12 months to September led by new housing which leapt a whopping 13.6%, according to new figures from the Office for National Statistics (ONS).
The figures were up a healthy 1.7% in the third quarter, the highest Q3 growth figure since 2003.
This will come as a relief following disappointing government figures published last week showing the number of new homes had fallen for a fifth successive year.
The housing market is gathering pace and striding ahead with prices rising in every region for the first time in three years, said David Newnes, director of LSL Property Services. "The recovery has gone truly national. This has also been reflected in construction, with an uplift in house building.
"We are seeing modest, yet significant, improvements with quarterly year-on-year growth for two consecutive periods for the first time since 2011.
"The fact that house building increased at a rate not seen since before the crisis shows we are moving into a brighter phase, not just for the sector but the wider economy as a whole."
But this is still not enough, Newnes said. "Help to Buy is helping to support demand, but we also need a ‘Help to Build’ to galvanise house builders and ensure the recovery is sustained.
"If both are realised then we could see a much stronger bounce back in 2014 and house price growth next year could well exceed this year. The signs are good, mortgage rates for new buyers have been quashed to historic lows and confidence is sweeping through the nation.”
Steve McGuckin, UK managing director of consultancy Turner & Townsend, said: "The construction sector is running, not walking, back to health. After two straight quarters of solid growth, the recovery now has some genuine momentum.
"The South East's property boom has spurred housebuilders into action. It has now returned to pre-crash levels not seen since the second quarter of 2008.
"The power of the housing sector to influence the overall figures is clear, it now accounts for nearly one-fifth of all construction output, and has more than mitigated the falling levels of infrastructure output."
But there are still regional imbalances, McGuckin said. "It is likely to be another 12 months before the strong growth seen in the South East can hope to reach everywhere.
"With growth now almost a given, the tough question for contractors is have they got the capacity to keep up with demand?"
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