Figures from the Communities and Local Government show the number of housing units started in the second quarter of 2010 in England rose to 28,590, the highest level since Q2 2008.
Simon Rubinsohn, RICS chief economist said the both the public and private sectors contributed to the better numbers, which are 13 per cent higher than Q1.
However, the trade body for chartered surveyors questioned whether the momentum can be sustained into 2011.
Figures from RICS showed new enquiries to start housing projects had “turned negative” in the second quarter of this year. Meanwhile, the Home Builders Federation has also highlighted a drop in site visits and an increased use of incentives in its latest report.
With government funding cuts, a drop in house building from the social sector is inevitable, said RICS, adding that building in the private sector could also begin to slow once it had replenished its “inventory.”
“Critically, we suspect that housing starts this year will amount to around 110,000 and the number for next year will be little higher. With demographics arguing for more than double this total on the most recent analysis, the prospect of a medium-term shortfall of good quality homes is a very real concern,” said Rubinsohn.
