Is my builder going to go broke?

This is one question I am asked constantly.

With what happened during Covid and the large Government grants pushing up demand for building a few years ago…quite alot of builders did go to the wall.

So what is happening now?

As one of my builders told me recently after a prospective customer asked “the broke “question “well if I was going to go out of business I would have by now”.

It has been tough for building companies in the last few years , with people scared about interest rate rises and what has been reported in the media.

But things are looking up, supply chains are open and abundant, interest rate rises are not a hot topic and there is plenty of land out there to build on, as well as some support from the Government …so thankfully building companies going under is becoming rarer these days.

If you are still worried, a big tip to remember is that your builder needs to supply the Home Warranty Insurance, now called Home Builders Compensation Fund, before they ask for a huge deposit.

This insurance covers the owner if the builder goes broke ,dies or goes missing, allowing another builder to take on the build and complete the home.

And another tip

Keep an eye out for these signs if you are worried about your builder

• Lack of communication: If your builder avoids discussing the company’s financial condition.

• Absence from the build site for long periods of time

If you are worried about building, I take the stress out of building a new home with guiding my clients through their build with one of my 5 builders. Get in touch for a new build chat.