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Spring claims 563 construction insolvencies

New figures show that more than 500 firms have gone under during the spring, making construction amongst the hardest-hit sectors of the economy during the recession, new figures show.

Accountancy firm Wilkins Kennedy found that 563 construction firms filed for insolvency between April and June 2009, out of a total of 6,588 companies in all sectors.

The total figure is 65% higher than the number in July-September 2007, before the credit crunch hit the economy.

The real estate sector, including estate agencies, investors and developers, was hit by 510 insolvencies.

“The crash in property values has not just impacted on the real estate and construction sector, it has also sent a shockwave through the other sectors like hotels where property makes up a substantial part of a company’s value,” said Wilkins Kennedy director Anthony Cork.

Mr Cork said that commercial property values had crashed and bank shareholders, including the UK taxpayer, had been hurt by the recession.

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