Industry warning as vast majority of property firms face financial difficulties
Original Article Summary
The findings come as the construction sector continues to play a critical role in delivering new homes and infrastructure,
Investor Analysis
A Menzies LLP survey of 250 UK construction and property firms finds 86% are in or approaching financial distress, with 93% experiencing late payments averaging 53 days — raising significant concerns about housing supply and development viability. The findings signal systemic cashflow stress across the contractor and developer ecosystem.
Investor Relevance
For SME developers and BTR investors, this signals elevated counterparty and contractor risk that directly affects delivery timelines and project costs. For residential asset managers and landlords relying on planned new supply, the data implies worsening housing pipeline constraints that could tighten rental markets further. Investors with live development projects should reassess contractor financial health and contingency planning.
Original Source:
Property Industry EyeStay Updated
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