Property insolvencies on the up

Investors are running out of patience with property companies pinning their hopes on an upturn in the sector, according to Deloitte.

Exclusive figures from the accountancy giant reveal that there were 46 property administrations last month, a 77% rise on the 26 administrations in May 2011.

This follows 45 property failures in April and, according to Deloitte, means that the industry now makes up 27.2% ofall business collapses - a stark rise on the 16.6% share it held a year ago.

Head of restructuring Lee Manning said: "This increase reflects stakeholders exhausting their patience on companies that were hoping to see an upturn in the sector to help them turn things around."

Manning said it was highly probable that with 91 property administrations in April and May, the amount for the whole quarter was likely to significantly exceed Q1's total of 110.

Notable administrations within the property sector over the past few months have included industrial developer Easter Holdings and City Site Estates.