UK housebuilder falls into administration as customers hear homes left unfinished

Hood Property Cardrona Limited, based in Scotland, has plunged into administration and may now be forced to sell its land near Peebles in the Scottish Borders

A UK housebuilder has plunged into administration, reportedly leaving homes unfinished and owing more than £4 million.

Scottish company Hood Property Cardrona Limited has entered administration and may now be forced to sell its land near the town of Peebles in the Scottish Borders, according to The Herald.

Administrators said they had to “forcibly gain entry” to the site of the 20-unit housing development the company was building, where offers had already been accepted on “several” properties.

However, more funding would have been needed “to finish building the properties and complete the development”, administrators said in an update.

James Stephen and Kerry Bailey of BDO have been appointed joint administrators and have extended the administration period until September, the Express reports.

They said: “Upon appointment, my staff together with our appointed security agent visited the company’s development site at Cardrona next to the town of Peebles in the Scottish Borders.

“Nobody was present at the site and they therefore required to forcibly gain entry to enable an initial assessment of the site to be carried out and new security measures to be put in place.”

A sale is “now proceeding and we anticipate it will be completed in the next few weeks”, they added.

HMRC has submitted a claim for £4,684, while a further £300,000 is owed to creditors, although it has not yet been confirmed whether this will be paid. The administrators warned: “It is anticipated that a dividend will not be paid to unsecured creditors.”