Thousands of lettings and estate agencies, and other property businesses, are in ‘critical’ or ‘significant’ financial distress, it’s been claimed.
The latest Begbies Traynor Red Flag Alert report has found that levels of ‘critical’ financial distress jumped dramatically in Q4 2023, up 25.9 per cent on the prior quarter and allegedly leaving more than 47,000 businesses near collapse in the UK at the start of 2024. This represents the second consecutive period where critical financial distress has grown by around a quarter.
And Begbies says: “Serious concerns grow over the construction and real estate sectors which still represent nearly 30 per cent of all businesses in critical financial distress.”