It is understood that the group is eyeing up two targets – Allen subsidiary Ryan and privately owned firm Kennedy Group, whose headquarters is in Manchester.
Speculation also continues to surround a possible merger between Alfred McAlpine and another quoted housebuilder. McAlpine's merger talks with Bryant broke down at the start of last year.
Alfred McAlpine said last October that it was looking at acquisitions to add to its special projects division, adding that it might extend its search abroad.
Chief executive Oliver Whitehead has long made known his interest in joining the sector's consolidation.
He praised the latest movement among housebuilders, saying it justified his firm's attempts at expanding operations.
One analyst predicted that another merger deal between two housebuilders was likely in the next two weeks. He said: "All the big boys are looking around. They are jockeying for position – there has got to be more bids in the offing." One analyst said the larger listed housebuilders felt that they were under pressure to break into the FTSE Top 250 in order to attract the City's institutional investors.
Targets could include smaller players such as Bovis, Countryside or Swan Hill, which are "ripe for the picking" one analyst said.
The analyst added that it could also be a good time for Wimpey to look for merger partners.
He said that the deal could coincide with Wimpey's merging of its two housebuilding arms, Wimpey Homes and McLean Homes.
Other firms taking part in consolidation could include contractors with housebuilding interests, such as the newly merged Galliford Try group.
