British construction purchasing managers' index (PMI) climbed 62.6 in June from 60.0 in May, marking a four-month high and 14th consecutive month of output expansion, said Markit on Wednesday.
The data was significantly higher than market expectation consensus of 59.8.
Residential construction remained the best performing area activity during June, and the latest rise in housing activity was the steepest since January, said the London-based survey compiler in a press release. Construction building activity also climbed at the most marked pace for five months in June.
Civil engineering output growth recorded a moderation in June, while volume of new work received by British construction companies increased sharply. Strong demand for construction materials contributed to a pick-up in input cost inflation to its highest for six month in June.
Tim Moore, senior economist at Markit, commented: "The latest survey suggests that the UK construction sector has expanded by more than one percent over the second quarter of 2014, driven by improvements in the underlying health of the UK economy, favorable funding conditions and robust increases in new housing starts."
"A key recent development across the construction sector has been the return to pre-recession rates of job creation, following a prolonged period of falling payroll numbers and cuts to operating capacity," he said.