Despite this, starts are currently only running at around 50% of the level achieved at the high water mark of the previous cycle.
Commenting, Simon Rubinsohn, RICS chief economist said: “Significantly, most of the recent improvement has come from a turnaround in private sector development with output from housing associations remaining fairly stable.
"The rebound in housing starts is consistent with the better tone evident in the latest RICS Construction Survey. This also showed housing workloads on the rise although, significantly, the expectations series suggests that further increases in output are likely to be relatively modest. The lack of mortgage finance for first time buyers coupled with a shortage of development finance are two key factors holding back a more meaningful recovery in residential construction.
"RICS expects housing starts over the course of 2010 to total around 120,000. Although this is some way above last year's outturn of around 80,000, it compares unfavourably with the number of starts (typically around 170,000) recorded in the middle part of the last decade."
