NHBC's new housing registration figures have revealed the private sector is responsible for driving housing growth.
Overall, the number of new homes registered across the public and private sectors in the UK for quarter two of 2014 totaled 36,858 - a 3% increase on the same period last year.
The figures show the growth was driven by the private sector which grew 9% compared to the same period last year, whereas the public sector recorded an 11% drop in registrations.
"It is encouraging to see that house building levels have continued to grow in 2014, following the substantial increase in volumes recorded last year. We hope to see this growth further consolidated throughout the rest of the year," NHBC’s chief executive Mike Quinton said.
"However, we have been clear that the UK still has an under-supply of new homes so we must continue to work hard to meet the growing housing needs of the population."
Across the UK for the last quarter, the South East experienced a 48% increase compared to the same period last year, with the East Midlands also considerably up 38% for the quarter
Commenting on the private sector growth, Mr Quinton added: “Our figures also show that there has been a noticeable growth in the private sector. As expected, this has coincided with a drop in affordable housing registrations.
“This decrease in public sector registrations can be attributed, in part, to the first phase of the government’s Affordable Housing Programme coming to an end. We anticipate that the public sector will pick up again as funding is fully allocated for the next phase from 2015 to 2018.”