Strong growth in the UK construction sector has been boosted by the buoyant housing market and a robust commercial property sector, according to the Royal Institution of Chartered Surveyors (RICS).

Expansion in the construction business is at its strongest for three years as a result of the UK investment into new build that is now taking place, with 28% of surveyors reporting a rise in workload, rather than a fall, in the first three months of 2007. This was an increase from 26% in the previous quarter.

Wales saw the fastest expansion in construction workloads during the first quarter of the year, after a decline in the preceding six months.

“These are good times for the builders and the economic foundations for significant UK investment into domestic construction are in place,” said surveyor John Collier.

“Despite warnings of a housing market slump – which I simply do not believe will happen – prices are healthy and still rising, as you would expect with a commodity that is so in demand by so many people.

“Even the advent of Housing Information Packs, which sellers will have to have done from 1st June, won’t slow the momentum.”

His words were endorsed by senior economist at RICS, David Stubbs. “The immediate outlook for the construction industry is sound, as a healthy economic outlook continues to boost workloads,” he said.