Fears growing that the UK's Housebuilding & Civil Construction sector are now teetering on the brink of collapse, following yet another firm announcing its in financial 'difficulties'....
Sat 11th Feb 2023 12:33pm
The economic downturn could be set to claim yet another victim as its claimed Tolnet Construction, that has offices on Teesside is said to be on the brink of collapse, as construction workers were yesterday reportedly ordered to leave a number of sites around the region,
It comes just days after Newcastle Construction firm Metnor Construction Ltd called in the Administrators following claims the economic climate & rising inflation caused the company to spiral quickly into financial difficulty.
Bellway Homes has already reportedly abandoned plans to build 1000 more homes across the country citing claims of the economy pilling pressure on the companies balance sheet...
But its not just the civil construction sector thats seemingly taking the brunt of the economic downturn, with claims housebuilding firm Bellway homes is seeing a significant drop in demand for its homes being built as rising interest rates compounded with the lack of available mortgages for customers causing sales to plummet by as much as 60% with it being claimed that Bellway homes has now imposed a freeze on the recruitment of new workers to preserve its balance sheet with the “uncertain economic outlook” all said to be to blame for the company seeing its accounts looking paper thin as the economy is seemingly now hitting both the civil & domestic construction sector extremely hard.
Social Housing Giants house-builder arm would have gone under months ago, had it not been propped up by its parent company a source told Hartlepool Matters....
Gus Robinson Developments Ltd bought by controversial housing giant Thirteen Housing is propping up its housebuilding company with millions of pounds after the firms failed to make a profit since being bought out in 2018
On Teesside, its been claimed by a source close to the construction sector itself that had it not been for the continuous financial injection of funds to a Housebuilding corporation that's protected under the arm of its parent company Thirteen Housing Group Ltd, Gus Robinson Developments Ltd, Thirteen's social housebuilding firm would almost certainly have succumbed to the same fate of impending collapse, as the business previously reported by Hartlepool Matters some months ago recently again reported eye-watering losses for the financial year & financial loss thats likely to be shouldered by the corporations 34,000 tenants in the form of rent increases.
Its expected that an announcement on the possible plunge into Administration for Tolnet Construction could come as early as next week, as the signs of there being any potential recovery plan for the company is said to be 'impossible' under the current financial conditions one source told us.
The UK, whilst managing not to report a recession for this quarter is said to be very likely to see a further swathe of construction firms going to the wall if inflation & interest rates continue along their current pace, with the housing sector now feeling the heat, as demand for homes dwindle & demand for new builds even worse, as those seeking to buy properties new or old find now find there far less mortgages on the market than ever before and the ones that are available found to be considerable expensive, as the days of cheap interest rate mortgages now could be very much a thing of the past.
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