Hundreds of construction businesses are going bust every month as materials costs rise and the pool of skilled workers shrinks.

An average of 266 businesses per month collapsed in the three months to October, the largest number since before the pandemic and a 29% rise on the previous period, according to the latest Insolvency Service data.

On Friday, PDR Construction, a Hull-based builder with 115 staff and turnover of £83m, went into administration, leaving subcontractors and suppliers facing millions of pounds of unpaid bills.

Despite demand for building reaching record levels, supply chain blockages have meant contractors have been hit by rising costs for materials including timber, steel and cement, which they have not always been able to pass on to clients.

A lack of skilled workers after Brexit has also pushed up wages.