Housebuilder Taylor Wimpey will set itself tougher financial targets over the next three years as a result of the recovery in the housing market.

The Buckinghamshire-based firm said: "The UK housing market continues to perform strongly with sales rates and pricing at the upper end of our expectations."

Taylor Wimpey's shares rose 7% as its updated guidance to investors also sparked a rise among rivals such as Persimmon and Barratt Developments.

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The firm said from 2015 to 2017 it will aim to its boost assets by 15% a year, among other goals.