The deal gives Taylor Woodrow a stronger portfolio

Buoyed by soaring house prices, Taylor Woodrow has cash to spend, and needs acquisitions to boost its land portfolio.

The deal takes Taylor Woodrow into so-far underexploited regions, such as northwest England, and gives it enough land to meet 3.6 years of projected housing demand.

"We feel the fundamentals of the housing market remain robust," chief executive Iain Napier said.

The combined firm becomes Britain's fourth-largest housebuilder.