Almost one in five property companies are in financial distress, insolvency firm Begbies Traynor has said, adding that over 25,000 companies, including residential sales and letting agents as well as landlord firms and other property businesses, are facing financial problems, with the figure up 6.6% on a year ago.

The firm said that residential estate agents have been worst hit, with an 11% rise in the number of firms potentially in trouble.

The data suggests that 25% of estate agents across the UK have financial problems – an 11% rise on this time a year ago. Begbies Traynor says that of firms currently in financial distress, one third are unlikely to be trading in three years’ time.

In the last 12 months, the market has been hit by low supply, particularly in London where George Osborne’s hiking of Stamp Duty in 2014 for the most expensive homes continues to bite. Yesterday, central London agent Peter Wetherell tweeted: “Turnover decline due to Osborne - worse than the 2008 banking crisis.”

Also, according to the RICS, the number of homes for sale is now at a record low, creating further pressure on estate agents’ income from fees.