Bibby’s latest Business Factors Index reported the construction sector at its highest point since the Index began in 2007.

Karen Rawlinson, Director of Construction Finance at BFS said: “These results are encouraging and much of this growth can be attributed to the house-building recovery.

“It seems as though the Help to Buy scheme is having a real impact, which is positive.

“While there is still a long way to go to reach pre-recession levels of business performance, the Business Factors Index for Q2 shows a period of steady growth among construction businesses using specialist, invoice finance.”

Survey participant Vince McCormick runs a business in Swansea providing finishing trade services to a number of large housing developers.

He said: “The first two quarters of 2013 have been excellent and I am confident that the rest of the year will be the same if not better.

“Business is definitely picking up and confidence within the industry is stronger. I believe the days of low profit and chasing turnover are disappearing.

“There is a lot of work out there especially if you’re able to give a good service. A lot of self-employed tradesmen left the sector during the recession and went into a steady job because conditions were tough.

“As a result there are fewer people around now which means if you have been able to stay in business there is a demand for your service.”

The Index for the construction sector in the second quarter stands at 110.2, up from 102.6 in the first quarter of 2013.