Both sides have been in discussions since May with an opening £650m offer rejected by Crest Nicholson.

But Crest Nicholson directors indicated last month they “were minded to recommend”an improved £720m offer.

But Bellway suddenly announced on Tuesday that “it does not intend to make a firm offer for Crest Nicholson.”

The brief Stock Exchange announcement added: “As noted in its trading update released on 9 August 2024, Bellway remains confident that its robust balance sheet and operational strength, combined with the depth and quality of its land bank, will enable Bellway to deliver volume growth in the years ahead and support ongoing value creation for shareholders.”

Crest Nicholson said: “The Board of Crest Nicholson had engaged with Bellway in relation to a possible all-share offer for Crest Nicholson in response to a series of unsolicited proposals from Bellway.

“As outlined in its half year results on 13 June 2024 for the period ended 30 April 2024, Crest Nicholson remains confident in its standalone prospects, in particular given conclusion of the review of provisions for completed development sites supported by external consultants, its highly attractive land portfolio and the new leadership of Martyn Clark.”