Pride Park building firm closes social housing division as inflation bites

A well-known Derby construction firm has taken the “difficult” decision to close its social housing division – blaming the cost-of-living crisis and inflation – and reluctance from housing associations to work with smaller contractors.

Hodgkinson Builders says it is now in discussions with potential buyers for the social housing arm of its business.

In a separate move, the firm has posted a notice of intention to appoint administrators via law firm Freeths.

The move will protect Hodgkinson Builders from creditor action for a period of around 10 days.

A spokesperson for Hodgkinson Builders told TheBusinessDesk.com: “Due to the construction inflation over the last few years, the rising cost of living and the resulting financial pressures on construction businesses such as ourselves, we have taken the very difficult decision to close our Social House Building division.

“We have taken the difficult decision to close the division before more costs are accrued from the subcontractors and suppliers who we value most highly.

“Despite the previous Government directives for housing associations to engage smaller contractors and developers, there is a clear lack of support for such contractors in practice, and the current situation has impacted us and those we work with massively.

“We want to emphasise that the Hodgkinson contracting brickwork division remains completely separate and unaffected by this closure. Business operations in that division will continue as usual.

“Since the announcement was made, we have entered into negotiations with potential buyers, keen on purchasing our social housing division.

“Thank you for your understanding and continued support.”