Property administrations up in Q4

The number of property sector administrations in England and Wales increased by 35% during Q4 2011.

According to the latest figures released by the Insolvency Service, there were 50 administrations in the industry during Q4, up from 37 in the previous quarter.

The total number of property administrations during 2011 was slightly lower than in 2010. While there were 184 property company administrations during 2011 - accounting for 6.5% of all administrations - there were 194 in 2010.

However, the number of property company receiverships increased from 674 in 2010 to 729 in 2011.

Across all industries, the number of compulsory liquidations and creditors' voluntary liquidations during the last quarter of 2011 - at 4,260 - was 7.2% higher than during the same period in 2010, and 0.4% up on the previous quarter.

Additionally, there were 1,173 other corporate insolvencies in Q4 2011, comprising 324 receiverships, 658 administrations and 191 company voluntary arrangements.

During 2011, the total number of compulsory liquidations and creditors' voluntary liquidations at 16,871, was up 5.1% from 2010.

Mark Wilson, partner in Baker Tilly's real estate team, commented: "The overall numbers [of administrations] are still below those experienced in 2008 and 2009 where the average was circa 80 per quarter. Clearly today's numbers are not good news and what is clear is that 2012 is likely to challenging for many in the sector particularly those exposed to the secondary property market outside of London."