Property businesses worst hit as cases of ‘significant financial distress’ rise

The number of businesses in significant financial distress has risen, with property businesses particularly badly affected.

The latest red flag alert from insolvency firm Begbies Traynor says that in the last quarter of last year, large numbers of UK businesses were experiencing significant financial distress – altogether 494,000.

Many of these were companies formed since 2014.

Of the 22 sectors monitored, “real estate and property” had a 13% increase in the number of businesses going into significant financial distress between Q4 2018 and Q4 2019.

The report puts the total number in this sector at 53,159.

The report does not indicate what businesses it includes in the “real estate and property” sector but says that businesses involved in “the buying and selling of their own real estate” were badly affected, with a 30% rise in significant financial distress.

Begbies Traynor, which has handled the administration of a number of estate agency businesses, defines ‘significant’ distress as when a company has county court judgements of less than £5,000 filed against them.

 

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2 Comments

  1. Bless You

    So a bit like saying some one is drowning while they drink a pint if beer…

    Fake promo news.

    Report
    1. The Hero

      Not sure your comment makes any sense?

      This certainly doesn’t read as ‘promo news’ in that it is merely stating that companies dealing in real estate (not necessarily estate agents) are currently experiencing higher levels of financial distress.

      Your analogy is not relevant unless I am missing something?

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