According to figures released yesterday house building now accounts for more than a third of the total value of contracts awarded to the construction industry.

Construction data specialists Barbour ABI has published data which shows that residential construction contracts have increased with a value of 37% of total contracts awarded.

The report backs up the trends of a number of larger house builders in the UK who have also reported positive first half results.

Barbour ABI’s lead economist Michael Dall commented: “Once again, residential construction continues to dominate the industry, and it is not surprising to see house builders reporting record growth across profit, completions and average selling prices. This is not likely to change as long as the current economic conditions persist and demand remains strong.

"With output in the construction industry flat over the last quarter, mainly due to a very poor month in May, it's encouraging to see residential construction sustaining the industry going forward. However, growth in other key sectors such as commercial and infrastructure will also need to improve if the industry is to surpass its pre-recession size sooner rather than later."

The UK’s construction industry was dominated by London and the South East however this may in part be due to some big ticket contracts which include developments such as The Corniche, a £100m residential construction as part of the regeneration of Vauxhall Nine Elms on South Bank.