The surge in property companies closing immediately before the November 2025 Budget extended beyond landlords and letting businesses into building and development firms, according to Clarke Bell.
The insolvency specialist says the pattern was unique among recent fiscal and tax events and suggests uncertainty surrounding property taxation affected the wider sector.
Property Soup revealed yesterday that 54 real estate companies passed members’ voluntary liquidation (MVL) resolutions in the five working days before the November 2025 Budget, accounting for around one in six of all solvent liquidations during the period.
That was almost twice the sector’s usual share, while only six real estate companies passed MVL resolutions in the five working days immediately afterwards.
PROPERTY PATTERN
John Bell (main picture), Senior Partner and Licensed Insolvency Practitioner at Clarke Bell, says the same behaviour was not evident ahead of the 2024 Budget or either of the subsequent increases in Business Asset Disposal Relief rates.
He says: “Property was the one area where the pattern changed. Ahead of the 2024 Budget and both BADR increases, property companies moved in line with every other sector.
“Before the November 2025 Budget, they made up around one in six solvent liquidations in the final week, almost double their usual share.”
Bell says building and development companies displayed a similar pattern ahead of the November Budget, indicating the increase was not confined to one part of the property market.
TAX SPECULATION
He says: “The data can’t tell us why any individual shareholder acted, but the context is hard to ignore.
“That Budget was preceded by months of speculation about how property income and gains might be taxed, and it did go on to announce higher tax rates on property income.
“Building and development companies showed a similar pattern before that Budget, which suggests this was about property more broadly rather than one part of it.”
With the next Budget approaching, Bell warns property company owners considering a solvent closure against making decisions based purely on speculation.
He adds: “Anyone running a property company and thinking about a solvent closure should take advice on their own circumstances rather than react to speculation.”
