The chief executive of private housebuilder Linden said this week that there will be more mergers among quoted companies.

Philip Davies, who led a £73m management buyout of Linden in 2000, said that the volume housebuilders would consolidate, which would force smaller, niche housebuilders to leave the quoted sector and become private firms.

His comments came as Countryside looked set to seal a £222m management buyout, led by Alan Cherry and backed by Halifax Bank of Scotland.

Davies said the benefits of being a private company included the opportunities to be autonomous and to think beyond short-term gains to please the City.