Twice as many industry firms are going bust each day than before the credit crunch hit in late 2007
Over 17 property and construction companies are going bust every day, new research has revealed.
Accountancy firm Wilkins Kennedy claims the number of real estate and construction related businesses' becoming insolvent is now running at more than twice the rate that they were in the third quarter of 2007.
On average, more than 17 property and construction firms are now going bust every day, compared with 7.6 when the credit crunch first hit the UK in Q3 2007, Wilkins Kennedy said.
Meanwhile, the number of corporate insolvencies in the hotel sector has nearly trebled from 18 in Q3 2007, to around 53 in Q2 2009 – over one UK hotel company every other day.
Anthony Cork, director of Wilkins Kennedy, said: “The crash in property values has not just impacted on the real estate and construction sector. It has also sent a shockwave through the other sectors like hotels where property makes up a substantial part of a company's value.”