10 Mar 2011

Fears that Sovereign won't be the last to fail

1:47 pm on 10 March 2011

The head of a prominent builders' group fears that Sovereign Homes will not be the last company to fail in the struggling construction sector.

The Auckland-based company - one of New Zealand's largest non-franchised house builders - is in liquidation, despite a housing shortage in Auckland.

The director for the Auckland region of the Certified Builders Association, David Brown, says building consents are down, and he thinks more companies will go the way of Sovereign.

Mrb Brown says, however, that more work will filter through in the months ahead, because of the reconstruction of Christchurch and the Government's leaky homes package.