Rights issue follows the successful renegotiation of housebuilder's lending facilities last month

Taylor Wimpey has announced a £510m rights issue.

The move, revealed in Building two weeks ago, will be used to cut the company’s £1.5bn debt-pile.

Pete Redfern, chief executive, said: “We have taken the difficult decisions necessary to protect the inherent value in the group. Whilst we remain focused on managing cash tightly, following this equity raise, we are now in a strong position to focus on a return to profitability and to place Taylor Wimpey at the forefront of any housing market recovery.”

The cash call follows the successful renegotiation of its lending facilities last month.

It was forced into 10-month debt talks last July after failing to raise £500m through an earlier rights issue that fell £60m short of the target.

The company said the new cash would help avert the forced sale of land, bring forward developments and enable it to go into the land market when opportunities arose.