Representatives from the residential construction sector have expressed fears over the potential "catastrophe" facing their industry.

The group, meeting in Cookstown earlier this week, said an agreement must be reached to release the flow of equity in the housing market.

Construction and Property Group spokesman Brendan Cunnane called on the immediate cooperation between banks, government and the industry to save further jobs losses.

Mr Cunnane said collaborative action could save many building firms from closing, many of who are leaders in the NI market.

He said: "There are a number of the top 10 residential developers who are members of the group plus also very significant suppliers to the industry,

"We know we are dealing with a substantial level of debt and huge businesses. It's hard to see how the industry will survive in its current shape unless there is accommodation. Some companies will fail."

The group has made appeals for:

• The reintroduction of liquidity into the market by ensuring that affordable mortgages are available, particularly to first-time buyers
• The reintroduction, and adequate funding, of co-ownership by the Executive
• An urgent review of the comprehensive spending review by the Executive to improve availability of social housing and shared equity schemes.

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Mr Cunnane said the implications of the market slowdown are now affecting a wide range of professions.

"More recently we are seeing that that is filtering on through into surveyors, solicitors, planners, suppliers and everyone else involved in the sector."

He called on further interaction with locally elected politicians.

"We have been promised a meeting with the Finance Minister Nigel Dodds to look at the social housing provision and co-ownership housing. Urgent action is needed to prevent total market failure."

On Wednesday, Social Development Minister Margaret Ritchie told Build Ireland she was optimist about the future sustainability of the Northern Ireland construction sector.

"This is the first time in many, many years there has been such a major social housing development programme, which will be constructed over the next three years.

"So there is an opportunity out there for the development of the construction industry in Northern Ireland."

The Minister said further announcements on shared future housing estates, shared equity initiatives and mortgage rescue schemes will all provide a "very positive message" for the ailing building trade.

Yesterday, the Ulster Bank announced its new first time buyer product, which will eliminate the need for hefty deposits and provide purchasers protection from market volatility.

Ulster Bank Head of Mortgages, Derek Wilson, said: "A steady supply of first time buyers entering the housing market is vitally important, therefore by supporting first time buyers, this product offers resulting benefits to the market as a whole."

See: Scheme To 'Cancel Out' Deposits For First Time Buyers

See: Ritchie's 'Positive Message' For NI Building Trade

(PR/JM)