How construction fared in the City this week
You lot don't half like a gossip, don't you? The merest hint of a rumour that Bovis Homes might be subject to a takeover approach and off you go buying shares in it – last week the housebuilder's valuation rose 3.9% to 431p.

As is often the case in the City, there doesn't appear to be much substance to this latest tale; on the other hand, it does look as though another wave of consolidation is on the cards for the housebuilders.

Persimmon always seems to be acquisition-hungry and one big buy would probably put it into the FTSE100. But, despite being consistently linked with every other housebuilder in Britain, the company did not fare well last week: its share price dropped 1.5% to 475.5p.

Another faller was retirement homes specialist McCarthy & Stone. It dipped to 457p, down 9.8%. This follows chairman John McCarthy's announcement on Friday that he was ruling out another attempt to buy out the company that he founded.

The firm's other directors considered that a previous bid had undervalued the business, which at present commands 75% of the retirement homes market.