Sector will be the worst hit as economy continues to deteriorate, predicts new report

Construction and property are likely to be the sectors hardest hit by the recession this year, according to a new report by a leading accountant.

BDO Stoy Hayward estimated that as many as 10,300 construction and property businesses could fail over the course of 2009.

According to the accountant's new report, one in 56 companies across the UK will go bust in 2009, a 59% rise on last year. The firm predicts that a total of 36,000 companies will fail this year.

Shay Bannon, head of business restructuring at BDO Stoy Hayward, said: "The deteriorating economy and expectations of a drawn-out recession has led to a downward revision in the UK outlook and has severely impacted the survival rate of UK businesses."