Private housing will lead the recovery with infrastructure expected to further boost activity, contributing to stronger growth of 4.5% in 2015.

Noble Francis, CPA economics director, said: “The industry has suffered greatly over the past five years and earlier this year saw its lowest levels since 2001.

“Even with growth in the second half of this year, output is set to fall 1.5% for 2013. However, our forecast is for construction to recover from 2014.”

He said: “Growth over the next 12-18 months is predominantly due to a surge in housing sector activity, which is benefitting from the Help to Buy scheme.

“Help to Buy has clearly stimulated demand and led to increasing supply from house builders. We forecast housing starts will rise 39% by 2015.’

In the medium-term, greater infrastructure activity will stoke up growth, particularly from rail construction and energy-related work including nuclear, offshore wind, and small renewables schemes.

Regional disparities are evident with London and the South East showing the strongest levels of activity owing to major contracts and refurbishment projects.

Elsewhere, contractors are experiencing poor workloads.

But CPA forecasters warned the housing recovery depended on both a wider economic recovery and the government’s ability to ensure that its capital investment plans translate into real activity on the ground.

Francis said: “Recent housing policies have proved that when government announcements are followed through, the result is immediate and significant.

“Help to Buy Part 2 would be expected to make an even wider and more significant contribution through its support for the secondary housing market. Should the government do the same in other parts of construction then this industry will further support the wider economic recovery.”