Leading housebuilder Taylor Wimpey may boost its number of new sites later in the year as it sees enduring stability in the housing market.
Although the company is finding it tough to shake off the economic conditions, the stability of the housing market has shown signs it could soon bounce back.
The firm said: "We have been encouraged by the ongoing stability in the UK housing market, but remain cautious with regard to the prospects of the wider economy and, in particular, the potential impact of rising unemployment."
In May house prices rose by 2.6%, the biggest monthly gain in six years, according to Halifax.
Nationwide also reported a 1.2% rise for the month, while the number of people claiming jobless benefit was lower than expected in May.
Taylor Wimpey said its current order book was up 73% to £971m, compared to its level at the end of 2008.
The company said: "The severe downside scenarios for which we have been planning now appear less likely to materialise."
In April Taylor Wimpey agreed to a £2.5bn fundraising deal to help reduce its debts.
The deal will enable the company to save over £400m in interest over the next three years, and allow to acquire land and re-open mothballed sites.
Shares in the company were up 7.3% on Friday, after falling over 20% in the past fortnight.
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