Housebuilder McInerney Holdings has again warned that it is facing challenging conditions in both its Irish and UK markets as a result of a more restrictive credit climate and more cautious consumer sentiment.
The company told shareholders at its AGM in Dublin today, that since its results announcement in March, market conditions in the UK have further weakened.
Its UK sales are running 17% lower than the same time last year, while sales are taking longer to complete because of the longer timescales for people seeking mortgages.
McInerney said it expects a lower level of overall unit completions in the UK in 2008, but it added that at this stage the full year is difficult to predict. It is delaying new site starts and focusing on its affordable and social housing operations, which continues to perform well.
The company says that its Irish order book is about 18% less than at the same time last year and it predicts that its Irish output will be behind last year's levels.
McInerney said it is estimated that over 40,000 housing units are required for the Irish market a year. It said it believes that price incentives and the increases in mortgage interest relief and wages have improved the affordability of homes here.
'It is our view that the price correction in the market has now taken place and we expect more favourable market conditions to resume once mortgage availability and consumer sentiment improve,' the AGM was told.
McInerney said it expects to record a profit for the year as a while, with a loss expected in the first half. 'The result for the full year will be dependent on the trading conditions we experience from now to year end,' it added.
