It was hardest hit sector in the economic downturn during the year, with a 453 construction and property companies went into administration
However, the number was down 34% from 2009 when 683 companies in this sector went into administration.
Lee Manning, reorganisation services partner at Deloitte, said: “Risk of insolvency plays a big part in the property and construction industry because of its heavy reliance on supply chain relationships. Whilst many of the smaller property and construction firms would have been affected in 2008 during the early stages of the downturn, the sector still remains the largest to be hit by the market slow down, accounting for one in five administrations in 2010.”
Total administrations for 2010 across all industries were down 35% from 3,188 in 2009, to 2,086 in 2010.
Manning added: “Whilst 2010 administration statistics may have improved, the reality is that many companies are still walking a tight rope. A large number of struggling companies were able to stay afloat because of low interest rates, a lenient approach by lenders and HMRC’s favourable Time to Pay scheme. However, the rapidly changing economic environment will no longer make this sustainable.”
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