Jump to content
House Price Crash Forum
Sign in to follow this  

"zombie Estate Agents At Risk From Rate Rise" Article

Recommended Posts

Almost half a million British firms are now zombies, only able to stay afloat because interest rates are so low, insolvency practitioners Begbies Traynor estimated yesterday, with estate agents the worst affected.

One in seven firms can barely cover their interest payments and are at risk of going under if rates go up, amounting to an estimated 432,082 firms, the study found.

That is a rise of 16 per cent since 2010, and means 78,415 real estate and property services firms are at risk if interest rates rise.

The next biggest group of zombies is support services businesses, where 25,415 can barely pay the interest on their debts.

"These corporate zombies have clung onto life over the last six years due to a low interest rate environment and increased creditor forbearance, but this benign climate will not continue forever," said Julie Palmer, partner at Begbies Traynor.

"As unemployment falls fast, under Bank of England rules interest rates could rise as early as 2014. Even if they go up by only 0.5 per cent insolvencies could increase sharply."


Share this post

Link to post
Share on other sites

So to get it in perspective, approx. 10% of all Uk firms are zombies.


The estimated number of private businesses in the UK increased for the 12th year in a row to reach 4.8 million by the start of 2012


( 2011) There are around 2.8 million sole proprietorships in the UK, 450,000 partnerships, and 1.3 million limited companies.

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   224 members have voted

    1. 1. Which of the Prime Minister's options would you choose?

      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.