There has been a marked increase in liquidations in the construction sector after house prices fell for the eighth month in a row last month.

According to Kieran Wallace of KPMG, over the last ten months 13 construction companies have gone into examinership, four companies have gone into receivership, while another 30 companies have gone to the High Court to appoint liquidators.

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In 2006 only three companies went into examinership.

Jim Stafford, Managing partner of the Dublin liquidator Friel Stafford, said: "Smaller developers outside Dublin have bought land, are building developments themselves, have no financial cushion and are now under pressure because they can't sell houses."

Mr Stafford said the oversupply of new properties has resulted in a lack of work for builders.

(GK/JM)