The number of companies going into administration has risen by 16% so far this year as the credit crunch begins to bite British business, according to research by Deloitte.

Property and construction-related businesses experienced the most administration - up 54% in the first half of 2008, compared with the same period last year. Land stock values, property prices and the number of mortgage approvals all fell.

Transport companies have also been hit hard by rising fuel prices, the research said, with a 30% rise in administrations in that sector.

Administrations among independent IT providers has also risen by 40%.
There has been 18% fewer companies going into administration in the second quarter of this year but Deloitte predicted the figures to worsen.