New housing starts were up 4% from July to September with mortgage approvals for September rising 77% compared with a year ago.
In the three months from July to September 2009, the National House Building Council received 24,136 applications to build new homes in the UK.
North-east and north-west England improved the most, rising 149% and 37%, respectively.
Private sector applications were up 17% across the UK for the same period last year, while public sector starts fell 13%.
Imtiaz Farookhi, the NHBC’s chief executive, said: “It is reassuring that the NHBC’s figures show consistent improvement and that these positive signs extend across the UK. The sector has weathered the traditionally slow summer period, but we must now see out the autumn and hope that this confidence extends to the end of the year.”
Loans to homebuyers last month rose 77% on last year with the number of house purchase mortgages approved by banks reaching its highest level since March last year, according to the British Banking Association (BBA).
The 42,088 approvals were 3% higher than the August 2009 figure.
BAA statistics director David Dooks said: “Mortgage lending by the high-street banks is continuing to improve from the lows seen earlier this year, and the number of house purchase approvals continues to recover. Housing market activity will depend, however, on more properties coming on to the market.”