By Harry Mottram: More than a quarter of all self-employed or trader bankruptcies last year were builders or those in construction trades leaving thousands out of pocket losing their deposits for unfinished work on their homes. And they also left employees, suppliers and contractors unpaid when they went bust leaving a hole in hundreds if not thousands of bank balances.
Data seen by Checkaco and released by The Insolvency Service showed that 350, or 26%, of self-employed or trader bankruptcies in the year to November 2024 were in construction in England and Wales. Incredibly construction firms accounted for 16.3% of all insolvencies in England and Wales in December 2024, with 291 registered construction businesses becoming insolvent said the Insolvency Service. It is staggering when the sector as a whole is only 14% of the UK registered businesses but in contrast was the industry with the highest number of insolvencies last year.
Checkaco has consistently warned that if you are looking to engage a builder or building tradesman you need to check they are not going to let you down. Always do a credit check with Checkaco. Unlike Alan Street and partner Joanne Hart who paid £44,000 to a company called Hudson Garden Rooms who took the cash and then folded the firm leaving them empty handed. And last year the BBC reported on Elisa Sonaglioni and her partner Tom Walsh who ‘poured their life savings into renovating their home in Upper Rissington, Gloucestershire, only for their builder to disappear mid-way through the project.’ Luckily kind neighbours in the village clubbed together and began a fundraising campaign that reached £3,000, while construction firm Pentland and Chandler have stepped in to complete the project and providing their labour free of charge. As one villager said: ‘you don’t need the stress of a dodgy builder.’
Hudson Garden Rooms, run by couple Chris and Sophie Escrader, went into liquidation with debts of £400,000 in 2019 – but restarted the business as Hudson Living soon after to avoid paying debts or completing the work of their previous clients. It’s a common enough practice but a simple credit check with Checkaco would have spotted they were dodgy.
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