Irish building firm McInerney Holdings have failed to meet its expected number of completions in 2007, it has been revealed.

The news comes as challenging market conditions hit the business. Private house completions fell from 1,025 in 2006 to 597 last year. Business completions were also down to 391 housing units, from 309 in 2006.

However, while McInerney said 'negative sentiment and the tightening of credit' were to blame for the results, the firm believes this will lead to a more stable housing market and it will suit its business model.

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"We performed well in the more challenging market conditions in the second half of 2007," said McInerney's Managing Director Barry O'Connor.

"In Ireland, negative sentiment and the tightening of credit caused us to achieve fewer unit completions than indicated in our September guidance.

"The market is going through a period of correction, some of it necessary. That adjustment should provide a more stable housing market and should be advantageous to our business model.

"The fundamentals behind the Irish housing market remain positive."

The development company have fared better overseas, with total completions in the UK and Spain up to 2,414 last year from 2,372 in 2006.

(JM)