Nama warns 'soaring construction costs' undermining viability of building new homes

Nama is also set to tell the Public Accounts Committee that it cannot stop cuckoo funds buying properties as it is legally required to accept the highest bid

Nama chief executive Brendan McDonagh: 'Soaring construction costs coupled with pandemic-related delays and labour shortages are all putting upward pressure on the cost of delivering housing in Ireland.' File picture: Larry Cummins

The National Asset Management Agency (Nama) has said building more homes is very challenging as it can only support projects that will achieve a profit.

Nama chief executive Brendan McDonagh is due to tell the Public Accounts Committee (PAC) on Thursday that the agency can only finance developments where it expects to make money. However, he will point out commercial viability is becoming more "challenging" across the sector.