Accountancy firm, Mazars UK, reports that 4,370 construction companies went into administration in the year up to the end of November 2023. This represents a 7% increase over 2022 and a massive 76% rise from November 2021.
Higher material and labour costs have hit the construction industry hard. Rising borrowing costs have a knock on effect on profits for both live and pipeline projects. Consumer confidence has been dented with a rapidly rising cost-of-living and soaring mortgage rates has brought about a slow down in residential housing developments as well as putting a brake on the recent dramatic price rises.
Mark Boughey, partner in the restructuring services team at Mazars, said: “There are now on average a dozen building companies going under every single day in the UK. This is an immensely difficult period for the construction sector.”
