Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. increased to 59.9 in September from 57.3 in August, exceeding expectations for a rise to 57.5.

A reading above 50 indicates expansion in the construction sector.

The increase was partly driven by a strong rise in in residential building.

"Construction firms enjoyed a strong finish to the third quarter of 2015, as a sustained rebound in new development projects continued to have an impact on the ground. Moreover, September data suggests that the UK construction sector is still experiencing its most intense cycle of job hiring for at least 15 years, and consequently skill shortages remain a dominant concern across the industry," Senior Economist at Markit, Tim Moore, said.