Taylor Wimpey is attempting to renegotiate its debt arrangements and free up cash in order to take advantage of returning demand in the housing sector

The housebuilder restructured its £1.55bn debt last year and has been severely restricted in its ability to buy land. However, it is taking steps to change this arrangement. The firm is seeking an extension of the duration of its debt package, which will free up cash and take advantage of returning demand in the market.

A source said there was no danger of the firm breaching its current agreements and that it was still in early discussions.

Taylor Wimpey’s creditors include a consortium of banks made up of Barclays, HSBC, Royal Bank of Scotland and 12 others.