East London housebuilder Telford Homes has announced a £7.5m share placement to fund private housing

In a statement to the stock exchange last week, it said: “In the context of the continuing regeneration of parts of east London, enhanced by the 2012 Olympics, improving transport and a shortage of new housing, the directors consider that the company should begin the construction of homes for sale in the open market.”

The cash will enable it to fund open-market developments on two sites that have affordable housing and a further four projects in partnership with EastendHomes, a stock transfer organisation.

The move follows Telford’s purchase of Clifford Contracting last June, which gave it access to the £6m on its balance sheet.