The head of the Construction Industry Federation (CIF) has acknowledged that "mistakes were made" in the sector in recent years, but said that part-time builders and private investors must take the blame for the property bubble and the subsequent collapse of the market.

"From the industry’s point view, as across other sectors of the economy, mistakes were made," said Parlon. "At the height of the market, some property developers - no more perhaps than experts in banking and elsewhere - failed to read the signs and continued to invest in expensive sites and developments. They are now feeling the pain of the losses on these investments."

However, he said that "a sizeable proportion" of the land and property bought since 2005 was "purchased by ‘part timers’ and consortia of professional investors with no history of building" or development.

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