But the final quarter of 2014 produced subdued results as work on 29,800 homes began, a 9% year-on-year decline and a 10% drop compared to Q3.

At the height of the market in 2007, housing starts reached 183,600 but by the year ending June 2009, house building had crashed to 75,000 following the financial crisis.

By 2010 through to 2011, housing starts picked up to 110,000 and remained stable at this figure until dropping away to 101,000 in 2012. But, boosted by government housing schemes like the Help to Buy equity loan scheme, housing starts had risen to 124,680 by the end of 2013.

Stewart Baseley, executive chairman at the Home Builders Federation, said: “Today’s figures demonstrate the increase in house building activity over the past 18 months.

“Improving consumer confidence and the Help to Buy scheme have increased demand for new home and the industry has responded. We estimate that there are now over 100,000 more people employed as a result of the increase in house building, providing the country with an economic boost as well as much needed housing.”

Sponsored

The growth of ‘just-off-high-street’ lending

Sponsored by Pepper Money

Since the launch of Help to Buy 1 in April 2013, which provides an equity loan for people who want to buy a new-build home, 41,533 households have used the scheme.

The initiative has kick-started interest from the big high-street banks and building societies which have begun targeting the new build sector with product ranges and relaxed underwriting criteria to grab a slice of the resurgent market.

Leeds Building Society, Santander, Lloyds Banking Group and Nationwide have all been vocal on their interest in the new build and self build markets.