Telford Homes has said that it has raised about £20 million through a share placing as it aims to boost its operations in the British capital, London to cater to the growing demand for new homes.

The London-focused house builder is aiming to speed up its projects to developer houses faster to its customers. The company, which is listed in the junior stock market, placed the new shares at 250p that is about 0.8 per cent discount from Tuesday's closing price of 252p.

Jon Di-Stefano, the chief executive of the company said that the funds raised by the issue and the bank facility that was extended in April will allow the company to spend about £50 million on future development. He also said that the company is aiming to increase its output to up to 1,000 homes a year and is considering several potential schemes.

"The long term fundamental of the London market is that there aren't enough homes and that is not going to be corrected in short order. We felt it was the right time to increase our output and accelerate our own growth," he said.

The share issue was managed by Shore Capital.