Velocity Homes Limited has collapsed into administration seven years after the business first launched in November 2019. Administrators were appointed on May 18, marking a significant downturn for the UK housebuilder.
Administrators Appointed
On May 18, Jo Watts and Andrew McTear of insolvency firm McTear Williams & Wood Limited were appointed as administrators for Velocity Homes. The company, which had been operating since 2019, faced financial difficulties that led to its collapse.
Rising Administration Numbers
The news comes amid a broader trend of increasing insolvencies in the UK. Administrations rose by 52 per cent between February and March, climbing to 235 cases. Compared to March 2025, administrations were up by 82 per cent, highlighting the challenging economic environment for construction firms.
Previous Collapse of Merit Holdings
Back in March, Merit Holdings, another UK-based construction company, collapsed into administration, leaving £17.4 million in unpaid bills and hundreds of workers redundant. The Northumberland-based company entered administration last November, with administrators from Interpath stating that it was "highly unlikely" that unsecured creditors would receive any payment for outstanding invoices.
Merit Holdings employed 284 people at the time of its collapse, resulting in hundreds of redundancies. Its most recent accounts, filed for the year ending June 30, 2025, showed a healthy turnover of £79.9 million and a pre-tax profit of £4.3 million.
Asset Disposal
The administrator's report, released a few months later, revealed that a "substantial disposal of assets" was agreed with a connected party for £396,000. The buyer was a newly formed company, Merit Industrialised Construction Ltd.
According to Companies House records, Kirsty Wells, Matthew McGrady, and David Wilkinson, who were directors of Merit Holdings, were also directors of Merit Industrialised Construction Ltd at the time of the purchase. Records show that Kirsty Wells incorporated two other new companies in November: Blaze Technology and Newco MHL Ltd. This occurred around the same time the administration process was underway.
Interpath’s report does not suggest wrongdoing, but it shows the limited prospects for creditors, with unsecured suppliers and subcontractors facing significant losses.
