House building group McInerney has released an update on trading for the second half of this year.
The group says its prospects continue to be affected by negative consumer sentiment and the restricted availability of mortgages for home buyers. McInerney says deteriorating international conditions have further delayed a recovery in the Irish and UK housing markets.
The company describes sales in Ireland and the UK as 'low but steady', adding that price cuts are 'yielding results'. McInerney warns that its level of building will be below what it expected when it reported first-half results, but it expects a 'significant' increase in UK social housing output in 2009.
The group says talks with UK banks on a new debt arrangements are progressing.
McInerney welcomed housing measures taken by Finance Minister Brian Lenihan in the Budget but warned that recent interest rate cuts were unlikely to bring any positive impact until next year.
