– We expect more bankruptcies and redundancies in the construction industry beyond the autumn, says specialist director of the Norwegian Building Industry Association (BNL), Kjetil Tvedt. On Friday, the news came that the housebuilder Jadarhus AS, which had a turnover of 200 million in 2021, was bankrupt. 52 housing units that are under construction have now been stopped pending bankruptcy proceedings. In addition, the company owned several plots of land. According to the Brønnøysund registers, over 150 companies that have been registered within the construction and construction suppliers segment have gone bankrupt or been forced into liquidation since June. Among these we find companies such as Lierhus AS, which had a turnover of NOK 271 million in 2021 and Akro Bygg AS, which had a turnover of NOK 146 million in 2021. The Housing Manufacturers Association in Norway believes there is a crisis in the industry. – This is hard. Here you see a failure in the private market, the business market and industry. And we also see that the public sector is reducing maintenance and investment, says Tvedt. According to figures from them, there were 89 per cent fewer apartments started in June 2023 compared to June 2022. Over 400,000 employees No improvement is expected either. This will lead to demand in pressured areas being directed towards second-hand homes, and we may see price growth, believes Tvedt in BNL. Now he is most worried about what will happen when this turns around. – I am afraid that the expertise will disappear out of the industry and out of the country. And it is not so easy to rebuild, he believes. There are over 400,000 employees in the construction industry in the country. The decline will affect many, Tvedt believes. – If we come back with fewer professionals, we are afraid that the quality will go down, and that the hourly prices will go up and will contribute to increased costs for housing construction, he says. Daniel Grant Cowling moved into a new house in Bryne a year and a half ago. He is worried about what will happen if a fault occurs during the warranty period. Photo: Maja Mathisen / news Homeowners can struggle Daniel Grant Cowling moved into a house in Bryne Park in Rogaland built by Jadarhus in 2021. He is worried. The home is still covered by the guarantee. In Bryne Park, there are several homes that are still under construction. What happens next with these is currently uncertain. news has been in contact with Jadarhus, who refers to housing councils. So far, news has not been able to get in touch with trustee Flemming Karlsen. The company Jadarhus is bankrupt. 52 construction projects are now on hold pending bankruptcy proceedings. Photo: Jadarhus He does not know what will happen with the one-year visit to Cowling’s home. – The guarantee lasts for five years after the takeover. Right now, Jadarhus is carrying out a one-year inspection of me and the neighbours. I hope they continue with it after the joint holiday, he says. If a developer goes bankrupt before the home is completed, you must make a claim to the bankruptcy estate. In addition, you must withhold the rest of the purchase price if the work stops, and you must clarify what is needed to complete the home through others, according to Thomas Iversen, senior legal adviser at the Consumer Council. – In such situations, it may make sense to check whether you have legal aid cover in one of your insurance policies, so that you get legal assistance for parts of this process, says Iversen. Senior legal advisor at the Consumer Council, Thomas Iversen. Photo: The Consumer Council The problem, he says, is that in the event of bankruptcy, you stand far back in the queue to get coverage. – Consumers are often left with a large expense for which they do not get coverage from anyone, typically in connection with the repair of defects in the home, he says. The lowest new home sales of all time New home sales have fallen over the past 21 months and are now down 38 per cent compared to a year ago. According to BNL’s measurements, this is the lowest ever new home sales in the country. NHO’s member survey, which has recently been published, shows that 45 per cent of the companies surveyed have a pessimistic view of the market outlook for the next six months. – We feel that the authorities do not have an understanding of how serious the market situation the construction industry finds itself in actually is. It is heading for a quiet summer, a stormy autumn and an icy winter for the construction industry, says CEO of BNL, Nina Solli. She explains that earlier in July they sent a letter together with a united construction industry, where they asked for a crisis meeting with the Minister of Finance and Local Government. Managing Director of the Building Industry Association, Nina Solli. Photo: Eva Helene Storm Hanssen / Moment Studio They have also asked for relaxations in the lay-off regulations, without success.
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Crisis among housebuilders – several large companies have gone bankrupt – news Rogaland – Local news, TV and radio
