Construction was the largest contributor to economic growth in the third quarter of the year.

Figures published on Tuesday revealed that output in the sector increased by four per cent.

This makes it the largest contributor to the 0.8 per cent increase seen in overall GDP.

Liz Peace, chief executive of the British Property Federation, commented: "These are encouraging results and illustrate just how important a vibrant construction industry is to the overall UK economy.

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"During the last two quarters the construction industry has posted strong economic growth for the first time in three years. It is vital for the UK that it is allowed to maintain that momentum."

However, the federation warned that ministers need to move quickly to introduce "some form of Tax Increment Financing" to ensure that the sector is not held back.

This involves forwarding funding for infrastructure, such as roads and community facilities and is seen as "vital to unlocking new development".

(GK)