<p>Industry consolidation shows no signs of abating, with more major deals expected to be sealed as Housebuilder went to press. Market commentators agree that the increasingly constricted supply of land and the changing nature of housebuilding will continue to drive further mergers and acquisitions among major players desperate to grow. Hometrack’s research director Richard Donnell said: “Consolidation in the housebuilding industry is linked to the fact it’s a fragmented industry. Even the most dominant players have 12% to 13% market shares. The nature of housing development is changing. People are looking for growing economies of scale, expanding operations, getting more leverage in the markets and also getting hold of land.” </p> <p>Housebuilder’s finance editor Steve Menary said: “For listed housebuilders, where the bottom line is satisfying shareholders by growing profits, the only solution is to sell significantly more homes. Land is now so scarce and expensive, dogged by a seemingly intractable planning regime, that housebuilders driven by high expectations in the City are better off buying whole companies.” As Housebuilder went to press, the sale of Crest Nicholson to the HBOS-backed Castle Bidco consortium, led by Scottish entrepreneur Sir Tom Hunter, was expected to be ratified by shareholders in early …