Strong  demand for starter homes fuelled a 63 per cent rise in house completions by one of the Republic's largest builders last year.

McInerney Holdings built a record 1,011 houses in 2002 as first-time buyers entered the market in unprecedented numbers.

But revenues remained static year-on-year with growth in completions offset by lower unit prices, the company said in a trading statement yesterday.

Expansion in Britain, which followed the acquisition of property developers Charlton and Hargreaves Homes, boosted output said managing director Mr Barry O'Connor.

Brisk business is predicted for 2003 although sales will not climb at last year's rate, he said.

"We expect to see healthy demand continue over coming months but we do not believe that the order of increases will be anything along the lines of those witnessed in 2002."

McInerney remains keen to broaden its portfolio of British holdings but is not presently negotiating further takeovers, Mr O'Connor said.

Private house completions across Ireland, Britain and Spain rose to 1,161 from 711 in 2001. Year-on-year aggregate deposits in all three markets rose by 134 per cent to 726 from 310 for 2001.

The group's latest accounts show profits rose 77 per cent to €7.3 million in the first six months to June 30th.