© The Herald
Originally published: 09.10.2009

Amid a growing sense of optimism about the housing market, meeting the challenges of what has been a tough 18 months has helped Scotland's homebuilders create a stronger foundation for the future...

"It has promoted a better dialogue between the government and Homes for Scotland, the industry's governing body," says David Knight, managing director of Miller Homes Scotland. "This means we are working in a partnered approach in trying to develop solutions.

"As we've been in business for 75 years, we are seasoned hands when it comes to devising strategies to deal with peaks and troughs. The current situation means lower loan to value ratios, with many buyers struggling to meet the lending criteria and deposits mortgage providers are imposing. That is why we introduced MiWay, where we provide an interest-free loan the customer repays after 10 years."

,p>However, given the gloomy mortgage headlines, strong customer communication has also been vital, says David, with the company working hard to keep buyers informed about opportunities.

"We are aware that house prices are at their cheapest. We work closely with the banks and brokers to ensure we can get the best advice for customers. I think many visitors to our developments are encouraged when they meet our sales advisers. They get the chance to hear firsthand from someone in the industry that people are still buying and selling houses. There are opportunities available and it is part of our job to make our customers aware that they still have options."

With encouraging reports on both sales and prices, the outlook is brighter. "There is a feeling that the Scottish market has turned a corner, with reports from the Royal Institution of Chartered Surveyors (RICS) and the Nationwide underlining this," says David.

"A survey by the RICS showed more surveyors in Scotland reported a rise in prices, in the three months to the end of July, than anywhere else in the UK, and that enquiry levels from new buyers were also up.

"While we aren't out of the woods yet, as much still depends on mortgage availability, we are cautiously optimistic. Enquiry levels remain strong and sales performance levels have shown consistent improvement since January.

"We have seen an increase of 26per cent in visitor levels year to date in comparison to the same period in 2008, so traffic is on the move, and over the past few months, we have seen some lenders coming forward with higher loan to value products. Although tentative at the moment, it is a good sign."

The company is also busy with several projects and about to start work on a number of new sites.

"These include a development of 10 properties at Graysmill Gait in Edinburgh and our Ferryfields development near Dundee, plus new developments in Cumbrae Gardens at Saltcoats, Kirkton Park at West Kilbride and The Rowans, at Crookston in Glasgow.

"Several of our developments will feature four and five-bedroom, detached family homes, but also included in the range will be a substantial choice of three-bedroom homes, as we have noticed a growing demand for these. "We remain committed to providing our customers with assistance to move into a new home. Demand is still growing and the reduced amount of starts on site, combined with an increase in demand and a reduction in availability of new homes, strongly underpins the housing market for the future."