Interest rate cuts - a positive move for Miller

One of the UK's largest housebuilders has hit back at critics who are claiming that 2009 will hold more misery for British homeowners wanting to sell. According to Miller Homes, the industry's Major Housebuilder of the Year, they are 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.

Figures from the housebuilder show that a 1.5% cut in rates in November sparked a marked rise in enquiries at their schemes across the Nottinghamshire region.

Miller Homes says it is seeing more of the same now that interest rates have plummeted to 2% - levels not seen since 1951.

According to the company's national sales and marketing director, Sue Warwick, the latest cut is just one item on a long list of initiatives that together have had a positive, combined effect on market confidence in recent weeks.

Sue said: "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.

"Obviously, we need banks to pass the interest rate savings onto customers for the full benefit to be seen - but the cut in rates is a reflection of the economy in general. Oil prices are coming down and taking food and heating bills down with them. We've also seen cuts in VAT and Government reassurances that hardworking homeowners will be protected if they face redundancy - and this is the news that many people have been waiting for.

"If the Government lives up to this promise - and the promise to put pressure on the banks to increase their lending again, then there is every reason to believe that the worst is past for British homeowners."

Miller Homes says that the closing weeks of 2008 saw a definite increase in sales rates, much of which the business attributes to its MiWay scheme (where buyers pay 75% now and 25% later). The initiative has already helped the company to sell several hundreds of homes, and the business confirmed that it will be rolling this out to more of its homes in 2009.

Sue added: "As far as the new homes market is concerned, the coming weeks will be the very best time to buy a new home, with low prices and excellent deals on the table. If you don't believe us, then listen to Property Ladder's Phil Spencer and BBC Dragon, James Caan. They are both urging would be househunters to end the waiting game before they miss the best deals around.

"And why are they so confident? Because there is a housing shortage in the country and, with many builders halting their construction this year, the UK is falling further and further behind the Government's target of building 3 million new homes by 2020. This target wasn't dreamt up either - the country needs these homes to cope with a growing population and changes to the traditional household set up.

"This housing shortage underpins the housing market, so in the long term demand will grow again - and could well occur sooner than some experts are predicting. We certainly believe the worst has now past and there are calmer waters on the horizon for beleaguered homeowners everywhere."

Miller Homes is also offering to help many househunters who are wanting to move but struggling to sell, access to their part exchange scheme - MHX. For further information, log on to Millerhomes.co.uk/explore/eastmidlands.