The post-Brexit rise new in new homes orders has been so strong it’s helped the construction sector return to growth despite a decline in commercial non-residential  work.

Latest figures reveal that the new homes sector has bounced back after four months of declining orders with many buyers reporting increased confidence in the economy as Brexit fears subside.

This has led house builders to revise their outlook for business and homes construction and many now have the most optimism in the future since May, just before the Brexit vote. Some 45% of builders surveyed said their output would rise this year while only 9% said it would reduce.

The research, which is carried out regularly by Markit/The Chartered Institute of Procurement & Supply (CIPS), says that the increase in housing activity was the strongest recorded since January, with a number of builders citing “resilient demand for residential building work and generally improving market conditions”.

“A number of survey respondents noted that Brexit-related anxiety has receded among clients, although it remained a factor behind the ongoing decline in commercial building work,” says Tim Moore, Senior Economist at IHS Markit and author of the report (pictured, left).

But David Noble, Group Chief Executive of the CIPS, believes the construction sector isn’t out of the woods yet, saying that the “continuing pressures of input prices resulting from the weaker pound and the lingering uncertainty of the Brexit process” were still a factor.