Government figures released this morning show construction output rose 1.7% in the third quarter, built on 1.9% growth in April to June.

New work was the main driver up 3.1% on the last three months, but repair and maintenance activity actually slipped back by 0.6%.

There was also a small blip in the monthly output figure for September, which slipped by around 1% compared to August.

Steve McGuckin, UK managing director of the global construction and project management consultancy, Turner & Townsend, said: “Despite missing a stride in September, the construction sector is running, not walking, back to health.

“After two straight quarters of solid growth, the recovery now has some genuine momentum.

“The South East’s property boom has spurred house builders into action.

“The power of the housing sector to influence the overall figures is clear – it now accounts for nearly a fifth of all construction output, and has more than mitigated the falling levels of infrastructure output.

“But despite the strong pipeline of work and resurgent levels of confidence, the market is suffering growing pains,” he warned.

“Supply of building materials in the hotspot regions is struggling to keep up with demand.

“This is driving up input prices, and many in the industry are predicting further price rises of 3% to 8% next year.

“The regional imbalance is still marked too – with many parts of the country full of hopes and ideas but precious few cranes. It is likely to be another twelve months before the strong growth seen in the South East can hope to reach everywhere.”

Year-on-year ONS comparisons show construction output jumped 4.1% in the third quarter, driven again by new work up 6.1%.

Within the new work category, private new housing jumped 15.6% and private commercial other new work by 12.5%, while infrastructure fell by 3.7%.

These three sectors now account for three quarters of new work output, worth £13.1bn from July to September.