SPECULATION is mounting that Edinburgh-based Miller Homes is on the verge of being taken over by private equity giant Bridgepoint in a deal valuing the housebuilder at more than £600 million.

Reports linking Bridgepoint, whose portfolio includes coffee and sandwich chain Pret A Manger, with Miller resurfaced last night, after a deal was first mooted in April. It has been reported that a deal could be done as early as this month.

However the price-tag this time is reportedly lower than the £800m figure quoted then. Neither Miller, which is majority owned by private equity firm GSO Capital, or Bridgepoint made any comment when contacted last night.

The fresh speculation comes after a series of UK housebuilders defied the economic uncertainty following the Brexit vote to report bumper financial results this year, with the market boosted by measures such as Help to Buy.

In March Miller, which scrapped plans for a stock market flotation three years ago, reported a 44 per cent increase in annual profits to £89m. That came as it built 612 homes in Scotland.

The housebuilder has carried that momentum into its current financial year, reporting earlier this month that it has already forward sold more than 90 per cent of homes across its Scottish developments for 2017.