Accountancy firm PricewaterhouseCoopers (PwC) has revealed that 2,100 building firms went bust in 2008, Building.co.uk has reported.
The company’s research found eight building firms went out of business each day.
“The impact is across the sector,” said Jonathan Hook, construction and housebuilding leader.
According to PwC figures, insolvency’s were up 28 per cent in the final quarter of 2008 to the highest level the firm had ever seen.
Mr Hook said the poor results had not come as a surprise and predicted the situation will worsen this year.
“Even those contractors who are currently cash-rich need to be alert to the unwinding of cash flows on major projects and in particular the risk of financial failure in their supply chain,” he warned.
Commercial property investors could soon see their mortgage payments reduced if the Bank of England again cuts interest rates.
Capital Economics’ chief European economist Jonathan Loynes, has said to help the economy the Bank will “want to try virtually anything as far as a policy stimulus is concerned”.