Construction Employers Federation warns of NI 'property bubble'

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A shortfall in the number of houses being built in Northern Ireland could result in another property bubble, the Construction Employers Federation (CEF) has warned.

Government indicators suggest 11,300 houses should be built every year in Northern Ireland.

This is more than twice the figure of 5,400 homes completed last year.

The CEF said in a report that the amount of private house-building in Northern Ireland remains stagnant.

'Market restricted'

This is because of the debt overhang from the property boom in the mid-2000s, despite some recovery in the housing market with prices and activity levels rising.

The CEF said the construction sector accounted for about 7% of Northern Ireland's economic output and employment.

Of the top 20 construction firms based in Northern Ireland, it said about 90% of their turnover was coming from activity in Great Britain.

Industry representatives are concerned that these firms who look elsewhere for work will not come back, frustrated by political uncertainty.

CEF managing director John Armstrong said the current political impasse at Stormont was not acceptable.

"The construction industry has great potential to create opportunity and high value jobs quickly, but we are being held back from doing that," he said.

Mr Armstrong added: "Many firms are doing well outside of Northern Ireland so why would they come back here where the market is so restricted?

"Supply is not meeting demand - my concern is that there is the danger of creating another housing bubble in the medium to long term."