The chief executive of Taylor Wimpey, one of Britain's biggest house builders, has said that the country's housing market can absorb a rise in interest rates this year. He indicated that a rise in interest rate is unlikely to impact the recovery in an adverse manner.

Even if the Bank of England decides to raise the interest rate up to half a percentage point the momentum which saw house prices and sales volume rise over the last few months, could be maintained.

Many countries around the world are planning their exit strategy for the stimulus they have injected to save industries while many are worried that a rise in interest rate before time or an ill-timed withdrawal of stimulus could derail the recovery.

Mr. Redfern stresses that the timing for the rise in interest rate should be appropriate and the impact of interest rates rising back to pre-crisis levels would be easier to deal with if comes later in the year. "Obviously in the short term we would not like to see a rise in interest rates," he said.

Taylor Wimpey reported a 28pc growth over 2009 for forward orders for the current year while the average selling price rose from £153,000 to £160,000. The company reduced its debts to £750m from £1.5bn through last year. The company sold 10,186 homes in 2009 which was 24pc lower than the previous year.

Mr. Redfern expects this year sales figures to stay flat while emphasizes the need to push margins up.

Analysts do not expect the company to increase its land assets this year. The shares of the firm fell 0.93 to 40.71p in afternoon trading.