by business editor Trevor Sturgess

More evidence of a recovery in the housing market emerged today as building giant Taylor Wimpey reporting continuing stability.

Ahead of its annual meeting, the company, which has a number of sites across the county, announced that it might increase the number of new sites in the second half of the year.

Shares rose on the announcement.

Taylor Wimpey was expected to tell shareholders that the severe downsides for which it has been planning now appeared less likely. The firm’s order book is up 73 per cent from the end of 2008 to £971m.

However, the firm said it remained cautious, mainly because of rising unemployment. This week, it reached a 12-year high at 2.26m nationally. In Kent and Medway, the claimant count went up to 35,197, a rise of 465.

Last month (May), Taylor Wimpey raised £510m, mostly from existing shareholders.

Charlie Menegatos, senior trader at derivatives broker Accendo Markets said: "The announcement from Taylor Wimpey really does provide some firm evidence of an improvement in the housing market, which will of course have a knock-on effect into so many other sectors.

"Like other sector constituents, Taylor Wimpey shares have suffered a precipitous fall over the past 18 months, falling 75 per cent in the last year, and down 93 per cent from the 2007 peak.

"After a mini blip to 53p around the April results announcement, shares have fallen back again to 31p. While there is a long way to go, we believe the announcement lays some firm foundations for the shares to recover."

Meanwhile, retail property rents are expected to drop by a fifth by the end of the year, according to a survey by property consultancy Colliers CRE.,