The number of new-build houses being built in the first quarter was up by a fifth compared to the same time last year, according to new figures.

The Department for Communities and Local Government (DCLG) said that construction began on 43,170 new builds in the first three months of 2017, a 3% increase on Q4 of 2016 and 21 per cent higher than the same period last year. Completions were estimated at 39,520, 9% higher than the previous quarter and 21% higher than a year ago.

Construction of both private new builds and housing association properties saw increases.

Craig Hall, new-build manager at Legal & General Mortgage Club, said the figures were “encouraging”.

“Increasingly, the new-build sector is becoming an attractive option for lenders, as we continue to see more entrants to this essential market. The government, developers and housing associations must also work to support this sector, or we run the risk of restricting the homes for hundreds of thousands of people across our country.

“The simple fact is that more houses need to be built across all tenures. Shared-ownership, private rental, and owner occupier. New Build offers the perfect opportunity to restructure our housing market once and for all, by tackling our nation’s chronic housing shortage.”