Property construction was worth £6.77bn in the third quarter, which also represents a 5% increase on Q2.
Private sector output for housing has grown by 19% since Q3 last year, while construction by public organisations has increased by 35% annually.
Andrew Bridges, managing director of London-based estate agents Stirling Ackroyd, said: “Homes are most sharply sought after, and that’s reflected in the best figures for the housing portion of output since 2007.
“But prices are also higher, and volumes tell a different story.
“Across the country, we’re still only building around half the number of new homes each year as was achievable before the financial crisis. Rapid progress needs to continue, and accelerate.”
Housing has outstripped other forms of construction, as generally output increased by 0.8% from Q2 2014 and 2.9% from Q3 2013.
But Bridges added: “Construction is about more than just numbers of homes.
“New places to live need access to quality infrastructure and well paid jobs.
“Location matters, and for new homes that means proximity to centres of employment. That’s one of the reasons why London’s new homes market is outpacing the rest of the UK.
“At heart, construction is about building future prosperity – the two are intricately intertwined.
“New homes, offices and infrastructure will support every other element of our lives and livelihoods.”
