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Developer Taylor Wimpey appealed and said the council did not decide within the legal time limit.
BBC: Wiltshire homes plan approved following appeal
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The move was seen as an effort by Taylor Wimpey to retreat from the weak U.S. market.
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Twelve house builders have signed up to the scheme including Miller, Persimmon, Stewart Milne, Taylor Wimpey and Barratt.
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House builders were also hit, with companies like Persimmon, Taylor Wimpey, Bovis Homes and Berkeley Group falling around 6% and more.
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Finally, look for an anticipated drop in social housing expenditure to affect adversely U.K. home builders such as Bovis and Taylor Wimpey.
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Wiltshire Council rejected the Ridgeway Farm proposal over traffic concerns but developers Taylor Wimpey appealed and it was approved by the government.
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The project was funded by developer Taylor Wimpey, and had it not been for the firm's support, it would not have happened, he explained.
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Work on the new houses, which will be built by developers including Redrow, Taylor Wimpey and Persimmon, is expected to start early next year.
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The functions of the WDA were later taken over by the Welsh government, who sold the site to the builder Taylor Wimpey North West.
BBC: North East Wales
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Hundreds of housebuilding job cuts across the UK have previously been announced by Bovis Homes, Redrow, Taylor Wimpey and Persimmon as firms outline efforts to combat the property slump.
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In the past few years, firms such as Aviva, Taylor Wimpey, Trinity Mirror, Pirelli, Fujitsu, Barclays, Morrisons, Vodafone, BMI, Dairy Crest, IBM and Costain have all shut their final-salary pension schemes to their existing members.
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Persimmon, Redrow and Taylor Wimpey.
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