The proposed merger between housebuilders Taylor Woodrow and George Wimpey moved a step closer this week after it was approved by Taywood’s shareholders.

The £5bn deal, which would create the UK’s largest housebuilder with 31,000 annual completions, was approved by the competition commission two weeks ago.

The merger proposal will be put to a vote of Wimpey’s shareholders next week. The companies expect the first Taylor Wimpey shares to be issued on 3 July.

City sources said rival housebuilder Persimmon may still rumoured to be considering a bid for Taywood, although it is fast running out of time to do so.

Analysts had expected any move by Persimmon to have been made shortly after the posting of scheme documents to Wimpey shareholders, but these were sent out at the start of last month.

If the merger does go ahead the combined company will be headed by Peter Redfern, the chief executive of Wimpey.

It would leapfrog Barratt, which has recently completed the acquisition of Wilson Bowden, to become the UK’s largest housebuilder.