Elderton Homes

2022 - 12 - 12

Post cover — Image courtesy of "NEWS.com.au"

Huge blow as major Aussie builder collapses (NEWS.com.au)

Another major building company has announced it has gone into administration, marking another victim for the industry in 2022. 3 min read.

From June 4 2020, the federal government’s ‘HomeBuilder’ program provided a $25,000 grant for eligible new builds and large scale home renovations on homes that met the government’s criteria. According to the ABS during 2021 Australians spent $12.3 billion on renovating their homes, up 33 per cent compared with 2020. But when the pandemic arrived on Australia’s shores just a few months later everything changed. The impact of these events continue today. Also shuttered was Norris Construction Group, which was in Geelong, collapsing in March with $27 million in debt. In just a few months the fortunes of the construction sector changed dramatically, from a slowly dwindling pipeline of projects to unprecedented levels of government support for the industry.

Elderton Homes goes into administration as construction industry ... (Daily Mail)

Another major building firm goes bust leaving families with properties under development in limbo - as Australia's construction sector reaches crisis point · NSW ...

Prices of materials have been rising steadily since the start of the pandemic, but exploded in April and May last year (average prices of commodities - Arcardis statistics) The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. The collapses across the industry have left hundreds of staff without jobs, thousands of homes incomplete, and customers and subcontractors owed tens of millions of dollars. This led to a spike in demand for remaining stock and price rises, with builders bearing the brunt. The company is the latest in a long list of construction firms which have folded in the last 12 months including big players like ProBuild and Condev Constructions along with smaller firms such as Hotondo Homes Hobart, New Sensation Homes and Pindan Group. - Dozens of building companies across Australia have folded in the last year

Sydney builder collapses amid labour shortage and rising cost of ... (9News)

Elderton Homes announced it had appointed Liam Bailey and Chris Palmer of O'Brien Palmer as Administrators ...

[Perth-based construction giant Clough announced just last week](https://www.9news.com.au/national/clough-construction-giant-collapses-in-voluntary-administration/06fc8532-0a20-4c03-b876-7388e130e5e6)it was being placed into voluntary administration, putting the jobs of more than 1200 Australians in jeopardy and impacting the Snowy 2.0 hydropower project. [builder](https://www.9news.com.au/building)has plunged into administration after [catastrophic weather events](https://www.9news.com.au/weather), the [pandemic](https://www.9news.com.au/covid-19)and the rising costs of materials made business too costly to continue. Companies have battled the rising cost of materials and severe labour shortages. [construction firms have gone out of business this year](https://www.9news.com.au/national/condev-probuild-privium-more-major-australian-construction-companies-will-fail-2022-insolvency-expert-predicts/907d2e0b-4e56-4040-93e0-14295e8c5383), because of tough market conditions over the pandemic. The business started as a display home in the Hills District in 2009 and has since been involved in building "thousands of homes" in Sydney, the Central Coast and Illawarra. "Furthermore, the construction industry has also been subject to record levels of rainfall, substantial price increases on building materials, supply chain challenges and labour shortages."

Elderton Homes declares bankruptcy as the building industry struggles (TDPel Media)

The number of construction enterprises that have failed due to rising material costs, labor shortages, and interruptions continues to grow. Elderton.

Hundreds of employees have lost their jobs, thousands of homes remain unfinished, and consumers and subcontractors are owed tens of millions. The boutique builder attributed the ‘difficult decision’ to a variety of issues, including the bushfires and floods, the Covid epidemic, and the economic crisis. The company is the most recent addition to a lengthy list of construction firms that have failed in the past year, including major players such as ProBuild and Condev Constructions as well as smaller firms such as Hotondo Homes Hobart, New Sensation Homes, and Pindan Group.

Elderton Homes enters administration (The Property Tribune)

The NSW-based company has blamed macroeconomic conditions, the pandemic and natural disasters for the liquidation.