BRIDGEPOINT’s £655 million takeover of Edinburgh-based Miller Group appears to represent a vote of confidence in the housing market which will be studied with interest in Scotland.

The private equity firm said it bought Miller to gain exposure to regional markets in which housebuilders can expect to capitalise on a growing mismatch between demand and supply.

Bridgepoint presumably agrees with those who believe interest rates are unlikely to rise fast enough from their historic lows to disrupt the market while employment levels will remain supportive.

It is backing a management team which has highlighted the appeal of the commuter areas of central belt Scotland, in which the company sees considerable scope for growth.

Miller has a limited presence in the area around London, where some fear house prices have hit unsustainable highs.

But Bridgepoint could only buy Miller because Blackstone was ready to sell the stake it bought in the company in 2012. The US firm took control of Miller after a downturn that had been considered unlikely wreaked havoc in the housebuilding sector.

In April it was reported Bridgepoint might pay £800m for Miller.

Blackstone may have been required to accept a significant cut in the valuation of its holding in order to reduce its exposure to the UK housing market