Quarterly new build starts were up 10% in Q3 from the previous year according to the housebuilding statistics released by the government.
This increase comes after Chancellor Philip Hammond launched a £2.3bn Housing Infrastructure Fund for up to 100,000 homes in his Autumn Statement.
The number of completions also rose by 6% from Q2.
The report said Cambridge and Dartford are seeing the strongest figures of new build starts, as are areas in Gloucestershire, Derbyshire and Northamptonshire.
Interestingly, the report highlights that some of the greatest increases and decreases of new build starts are in parts on London.
Dartford saw the highest number of completions, closely followed by some parts of the capital.
Stephen Smith, director of Legal & General Housing Partnerships said: “It is encouraging to see an increase in the number of affordable new homes being built across the UK.
“This, coupled with the pledges Chancellor Philip Hammond made, is a welcome first step in resolving the serious imbalance between supply and demand that has hamstrung the market in recent years.
“With hints at a housing White Paper, it seems that the government is finally stepping up and tackling the chronic housing crisis once and for all.”
