The new builder London Square has been founded by Adam Lawrence who left Barratt in March.

He aims to build residential properties within the bounds of the M25 where the fledgling housing recovery is strongest.

Lawrence has set a target to build more than 600 new homes annually within the next five years, making his business one of London’s top house builders.

Typical developments will range in size and include both private and affordable housing. Individual house prices will range from £200,000 to £1.5 million.

To fund the business Lawrence has raised £100 million of capital with private equity group, Graphite Capital.

He said: “We are launching from an unrivalled position of strength in comparison to the majority of our peers.

“We are extremely well capitalised and are well positioned to take advantage as conditions improve in the housing market.

“The London and south east housing markets are showing signs of recovery, and there remains a strong pipeline of new opportunities, including distressed land sales from financial and government institutions.”