THE number of new construction firms increased by almost 5,500 in one year, the first time the industry has seen a rise since the financial crisis, according to a new report.

Almost 40,000 companies opened in 2013, around a third more than in the previous year, said accounting firm NoPalaver Group.

Director Graham Jenner said: "These figures suggest that the construction industry has finally reached a tipping point in its fortunes, with the number of new businesses being created on the up and the number closing their doors going down.

"Housebuilding has really picked up pace as the market has recovered. Demand for new homes is continuing to outstrip supply, moves to make the planning system more favourable are starting to have an impact, and initiatives such as Help to Buy have boosted home-owners' buying power.

"At the same time, commercial property has also rebounded, as more businesses now decide the time is right to upgrade or expand their premises and developers press the green light on shelved projects or see more new opportunities coming onstream."