Banks preventing people from buying houses, claim developers

THEY might have once operated as a holy trinity but property developers are now blaming both banks and the Government for their woes as house prices fall to their lowest level in many years.

Representatives of the Irish Home Builders Association yesterday pointed the finger at restrictive lending practices and high regulatory costs for the major recession that has hit the sector.

“Banks are a closed shop for everybody,” argued IHBA chairman, Dominic Doheny, who claimed the unwillingness of banks to lend to anyone other than civil servants would not be removed until NAMA was up and running and easier credit became available.