Door set manufacturer and distributor relocates to County Durham to substantially scale operations and create 30 new jobs.
The commercial property sector is a massive contributor to the UK economy. Statistics from the Statistical Research Department say the UK’s commercial property market is one of the largest in Europe, closely linked to overall economic success. The UK economy is facing arguably, its toughest test yet. While we’ve previously ridden out periods of rising inflation, never has it been driven by such diverse factors.
Insolvencies are on the rise
Several business sectors are already affected; accommodation and food services account for 11% of the total monthly insolvencies in England and Wales in June 2022. The sector only accounts for 5% of all companies registered in England and Wales. Retail is also starting to see an upward trend in insolvencies. Online retail is largely expected to weather the difficulties; traditional, shopbased retail is likely to be at the sharp end of the consumer spending squeeze.
Economists agree that corporate insolvencies will increase substantially over the next twelve to eighteen months, a particular risk to commercial landlords. Landlords need to be aware of the movement in the insolvency market to prepare and protect themselves against economic changes.