A group of business-recovery experts has warned that insolvencies in the commercial-property market may surge this year.

As many as 1,600 UK property firms could go bust this year as the country’s economic woes mount, Begbies Traynor estimates.

The news comes as several of Britain’s biggest landlords turn to shareholders to raise cash, including Land Securities and Hammerson, which have seen the values of their portfolios plummet.

Begbies Traynor’s 'Red Flag' early-warning system, which detects businesses in financial difficulty, has identified 304 UK property firms at severe risk of becoming insolvent because of the critical financial problems they face.

Sunday Times