McInerney expects to complete fewer houses

BUILDER McINERNEY Holdings expects that the number of houses it completes in Ireland and Britain this year will be less than the 1,175 it forecast two months ago.

The group, which specialises in providing new homes for first-time buyers and for the affordable housing market, said in a trading statement yesterday that negative consumer sentiment and restricted mortgage availability continued to curtail its prospects.

“Since the group’s first-half results statement on August 28th, 2008, the deteriorating international financial and economic conditions have further delayed recovery in both the Irish and UK housing markets,” McInerney said.

The group said sales in Ireland and Britain were at low but steady levels, while it was getting results from cutting its prices.

“It is currently anticipated that housing completions will be behind the guidance provided at the announcement of the first-half results,” the group said.

When it published its first-half figures in August, McInerney said it expected to build 350 houses in Ireland and 825 in Britain, a total of 1,175.

The group said the predicted fall in new home completions was partly due to the fact that Irish local authorities were waiting until next year to take up their allocation of this year’s new developments.

City and county councils are entitled to 20 per cent of any new development or financial compensation. McInerney said it was making good progress with its social housing businesses in Britain, and expected them to deliver a significant increase in output next year. Its statement said recent interest rate cuts in both countries should be beneficial, but added that the impact would not be felt until 2009.

“The measures taken to extend access to local authority mortgage finance and to increase the scope of shared ownership in the Irish budget are welcome,” it said.