One of the UK's largest housebuilders claims to see green shoots of confidence in the housing market follow- ing the sharp cuts in bank rates.
One of the UK's largest housebuilders claims to see green shoots of confidence in the housing market follow- ing the sharp cuts in bank rates.
Miller Homes, the industry's major housebuilder of the year', says it is "now seeing a number of signs that confidence is slowly, but surely, returning to the housing market - not least the pledge by HSBC to increase the amount of money it lends to Britons for mortgages by 20% next year".
It says its own figures show that the 1.5% cut in rates in November sparked a marked rise in Inquiries at its developments around the UK at the time - a pattern echoed by househunting websites, rightmove.co.uk and smartnewhomes.co.uk, which also reported significant growths in enquiry levels shortly after the cut was announced.
Miller Homes says it is seeing more of the same now that interest rates have plummeted to 2%.
Sue Warwick, national sales and marketing director for the Edinburgh-based group, says recent initiatives have had a positive combined effect on market confidence in recent weeks.
"The number of chartered surveyors who believe the market has bottomed out has increased fivefold, from 4% to 20% (according to a recent survey of members of Chartered Instituted of Surveyors), the number of transactions recorded by the Land Registry seems to be increasing again, and there are early indications that large lenders are considering a move to accept builders' deposits for the first time in months," Warwick said.
Miller Homes says that the closing weeks of 2008 have seen a definite increase in sales rates, much of which the business attributes to its MiWay scheme, where buyers pay 75% now and 25% later.
Warwick added: "Obviously, we need banks to pass the interest rate savings onto customers for the full benefit to be seen.
"But if the government lived up to its promise to put pressure on the banks to increase their lending again, there was "every reason to believe that the worst is past for British homeowners".
