UK house builders (by market capitalisation)

Berkeley Group: �929.5m Persimmon: �898m Barratt Development: �802.5m George Wimpey: �724.9m Wilson Bowden: �688.5m Bellway: �395.5m McAlpine: �357.8m

Wimpey said that it expected to cut about 450 jobs from the unit, as it merges it into its own operations.

Bigger players

The move could trigger a much wider shakeup of the UK house building industry, which analysts say is dominated by medium-sized firms.

Plans for new house building in the UK are well behind schedule, and house prices continue to soar in many parts of the country as new housing starts have fallen.

Part of the problem, according to some, is the range of small-to-medium building firms lacking the "assembly line" ethos and techniques which bring prices down in the US and much of Europe.

But in the meantime, prospects for the housing business have improved further, thanks to the recent surprise cut in UK interest rates.

McAlpine also announced that it plans to return more than �100m to shareholders during 2002.

Alfred McAlpine said it will retain assets worth �34m from its house-building unit.