The latest RICS construction market survey shows a record net balance of 41% more survey respondents reported rises in privately-funded housing projects compared with Q2 (+31%).
The overall construction sector saw workloads rising in the quarter at their strongest rate since the summer of 2004. Growth was also driven by private commercial and industrial developments, with funding finally being released for projects to start.
On the construction employment front, a net balance of 49% more survey respondents expect further jobs to be created in the sector over the next 12 months.
"Worryingly, however, this improving picture for employment is already being reflected in a jump in reported skill shortages, highlighting the potential for capacity issues if the recovery continues to gather pace," the RICS said.
Some 71% of surveyors believe workloads will pick up speed in the next 12 months, with output likely to rise by 4%.
eanwhile, the Construction Products Association has upgraded its forecasts. It is now expecting the construction industry to grow by 19% by 2017. Growth of 2.7% is forecast in 2014 and 4.6% in 2015.
It predicts private housing starts to increase 19% in 2013 and by 15% in 2014.
