MILLER Homes has cancelled its initial public offering less than two weeks after announcing it intended to float.

The Edinburgh company, a subsidiary of Miller Group, cited uncertain market conditions as the main reason for abandoning the plan to raise around £140 million.

That comes in spite of generally good conditions for housebuilders, with low interest rates coupled with government-backed schemes that are set to support mortgage lending for many years to come.

It is believed roadshows, where executives meet with investors to drum up support, had yet to begin.

In a brief announcement sent to the Stock Exchange, Miller Homes said: "In light of the recent financial markets' volatility, the shareholders of Miller Group have elected not to proceed at this time with a public offering of Miller Homes.

"The shareholders are excited to support Miller Homes in its next phase of growth as the company builds upon the momentum evidenced in its recent operational and financial results."

Shareholders are thought to have become concerned about the downward trend seen in the FTSE this week, which closed at its lowest level since December on Thursday, as well as the fluctuations seen in other housebuilding stocks such as Persimmon and Barratt.

It is understood that Miller Group's majority shareholder, GSO Capital Partners, a division of Blackstone, was supported in the decision to pull the IPO by minority stakeholders such as the investment arms of Royal Bank of Scotland and Lloyds Banking Group.

The shareholders are believed to have been concerned about the general factors affecting the market, such as political concerns and the eurozone, rather than being specifically worried about the UK housebuilding sector.

Although a flotation will not happen this year, sources suggested the move was not entirely off the table and could be revived down the line when markets are more benign.

Miller Homes suggested it would be business as usual as it looks to build on a strong first-half performance in 2014. Revenue between January and the end of June increased from £123.3m to £173.6m while underlying operating profits more than trebled to £19.4m.

Housing completions were at 845 in the period with an average price of £198,000. The 2013 completions were 1,684 at an average of £181,000.

Miller Homes had outlined in its intention to float document that it believed it could sell an additional 1,000 houses each year over the medium term with little increase in its overhead costs.

Yesterday there was no guidance given on how much the flotation plan may have cost the company but it is likely to run into tens of thousands of pounds.

Barclays Bank and Jefferies International were the joint bookrunners on the offer with HSBC as the lead manager while Moelis & Company UK was acting as financial adviser to the company. Those companies will all be due fees.

Separately, challenger bank Aldermore announced the price range for its IPO which will see it valued at around £800m - lower than originally anticipated.

The bank's shares will start trading on October 17 at between 217p and 265p.