UK Property News 18th July 2011

There was a 39% fall in the number of property insolvencies in the year to end of June. According to the latest Insolvency Index from Experian, there were 84 property insolvencies in the period representing 0.06% of the property business population. The failure rate for all UK businesses remained stable at 0.09 %, although the financial strength score of UK businesses as a whole fell from 80.83 to 80.06 in June this year. Mid-sized and large businesses in the UK are in general performing better. Businesses employing 51-100 employees saw failure saw failure rates drop from 0.23% in June 2010 to 0.19 per cent last month. The rate of failure amongst firms with 101-500 employees more than halved year-on-year, falling from 0.17% to 0.08% of the population this June. The East Midlands was the most improved region in June 2011, with the rate dropping from 0.11% in June 2010 to 0.09%. The South West had the lowest rate of failures, with just 0.07% of the business population becoming insolvent last month. In contrast, businesses in the North West and Scotland both experienced an increase against last year. The Building materials industry had the highest rate of failure, 0.27%, followed by Building and Construction, with a rate of 0.18%.