In July, housebuilding grew at its fastest rate since November 2003, according to findings from the Markit UK Construction PMI report.
The PMI Index, which also analyses civil engineering and commercial housebuilding showed that construction activity has now increased for the last 15 consecutive months and that hiring in the housebuilding sector enjoyed its biggest growth since the survey began in 1997.
The report also indicated that civil engineering activity lifted strongly in July and that commercial construction also rose, but at a slower rate than in June
Tim Moore, senior economist at Markit, commented: "July's figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn"
David Noble, chief executive of the Chartered Institute of Purchasing and Supply, expressed concerns that a shortage of workers could hinder future growth.
He said: "One concern is the strain on supply chains that could become a roadblock to sustained growth in the future, but there is evidence that firms are starting to look beyond in-demand sub-contractors and instead further boost their own staffing levels, which goes someway to explaining the record rise in employment levels.""