Taylor Wimpey, the UK's largest home builder by construction volume, said on Monday that it is taking a £550mln (EUR 695mln) writedown on its property land bank and development programme in the UK. The company is also writing down a further EUR 88.4mln in the US and EUR 50.5mln in Spain as the long-running residential property booms in those countries continue to deflate.

Taylor Wimpey, the UK's largest home builder by construction volume, said on Monday that it is taking a £550mln (EUR 695mln) writedown on its property land bank and development programme in the UK. The company is also writing down a further EUR 88.4mln in the US and EUR 50.5mln in Spain as the long-running residential property booms in those countries continue to deflate.

Responding to media speculation about a possible equity raising, Taylor Wimpey confirmed it expects to raise money from shareholders and other institutions, probably through a share issue. However, the company declined to comment on reports that it would seek to raise about EUR 500mln to help it weather the 'significant downturn' in the UK. Taylor Wimpey said it would provide further details and finalise figures in its 2008 half-year report.

The house builder is not the only company to feel the heat amid the slowing of the residential property market. New figures from the Bank of England will only add to the sector’s concerns. The UK central bank said on Monday that lenders issued 42,000 new mortgage loans in May, a sharp drop from the 116,000 new mortgages in the same period last year.

Also on Monday, Regis Group, the UK-based property investment and development company, moved to dampen speculation that it was poised to make an imminent bid for Grainger, the owner of over 14,000 residential properties in the UK now that it is suffering from the weakening market. Grainger's shares opened the day at almost 19.75 pence and rose 242.75 by 11am on the speculation of a bid. Regis issued a statement about the movement in Grainger's share price.

'Regis has watched for several months as Grainger has absorbed the impact of the worsening outlook for the residential housing market and the burden of debt it carries,' the company said.

'This significant turbulence in the housing sector and in financial markets means that Regis is not yet in a position to approach the board of Grainger. Accordingly, there can be no certainty that any offer will be forthcoming.'

Grainger's share price had dropped back to 211.25 by 4pm UK time.