Data requested under the Freedom of Information by chartered accountants Price Bailey to the Insolvency Service shows that in the last three years there has been a 67% increase in housebuilder insolvencies. In the last year 343 housebuilders became insolvent, the year before it was 272 and in 2016/17 it was 220. This article describes how SME housebuilders have been affected by the stagnant house prices in London and the South East and increased material and labour costs since the UK’s decision to leave the EU. Paul Pittman, partner at Price Bailey said “The proportion of new houses built by small housebuilders is dwindling and yet there is huge opportunity to build homes on the small parcels of land which the big developers won’t touch. The housing market is highly regulated and capital intensive, making it very difficult for new entrants to gain a foothold.”
Read the story here.