New PwC figures reveal 6% jump in insolvencies last year

More construction firms went into administration in 2011 than in the previous year, with 2,688 company failures across the sector.

The PricewaterhouseCoopers figures reveal a 6% jump in insolvencies last year compared to 2010, when 2,527 firms fell into administration.

Over 5,000 construction firms were lost in just two years, the PwC figures show.

PwC said London, the West Midlands, Yorkshire and the North-west were the hardest hit.

London alone saw 927 construction insolvencies last year.

Jonathan Hook, head of engineering & construction at PwC, said: “2011 was another tough year for the construction sector and there were 6% more insolvencies in the sector in 2011 than 2010.

“Over the last two years we have lost more than 5,000 companies and the trend shows no sign of abating.”