Ireland’s largest listed house builder McInerney Holdings said this morning it will post a first half loss this year as tighter mortgage lending criteria leads to a reduction in house sales in Ireland the UK.
In a statement released in conjunction with its agm which is being held in Dublin this afternoon, McInerney said despite this, it still expects to report a full-year profit
The homebuilder said orders in Ireland are 18 per cent lower compared with the same period last year and that activity levels are "exceptionally low" and that cost saving measures have been introduced.
McInerney said price incentives and increased in mortgage interest relief has seen affordability improve and the company said it believed the "price correction in the market has now taken place".
As a result it expects house sales to pick up once mortgage availability and consumer sentiment improves.
In the UK, McInerney said house sales are 17 per cent lower than this time last year and those sales are taking longer to complete.
The company said it was difficult to predict the full-year fall in unit completions.
It said the affordable and social housing sector was performing well and the company said it planned to seek growth from this area.
At 12.30pm McInerney shares were unchanged on the Dublin market at €0.91.