The ability of estate agents to swerve many of the major financial impacts of Covid has been confirmed following the latest company insolvency figures for the sector.
Latest data from The Insolvency Service reveal that the number of estate agents who entered insolvency in April this year was 26, down from 37 two years ago for the same month before the pandemic struck.
Estate agencies have been given several breaks during the pandemic including the early opening of the property market during lockdown, business rates relief and a VAT payment holiday, not to mention the ongoing furlough scheme.
The insolvency figures for estate agencies are part of a wider trend across the business landscape.”
In May there was a total of 1,011 registered company insolvencies, which was 7% higher than in the same month in the previous year, driven by a higher number of registered creditors voluntary liquidations. But this number is 25% lower than in May 2019.
“Since the start of the first UK lockdown, as a response to the Covid pandemic in March 2020, overall numbers of company and individual insolvencies have remained low when compared with pre-pandemic levels,” an Insolvency Service statement says.
“This is likely to be partly driven by government measures put in place to support businesses and individuals during the pandemic.”
But the figures do reveal a spike in insolvencies in December last year when 46 estate agencies went to the wall.
The sector with the highest numbers of insolvencies is the accommodation sector, which has seen between 100 and 130 insolvencies every month during the pandemic.