Construction firms accounted for 16.6% of all insolvencies in England and Wales in October 2025, according to The Insolvency Service, with 360 registered construction businesses becoming insolvent.
This was 69 more than had been recorded in September and was up by 40 on the 320 recorded in October 2024.
By rough comparison, construction firms accounted for 14% of all registered businesses in the UK as of September 2025.
The largest proportion of construction insolvencies were among firms providing specialised construction activities with 194 recorded in October – 25 more than those recorded in September.
The total number of construction firms becoming insolvent in the 12 months to the end of October 2025 was 3,973. This was a 5.8% decrease on the 4,217 insolvencies recorded in the year ending in October 2024 and a 23.4% increase on the 3,221 in pre-pandemic 2019.
Of all cases where the industry was captured in the statistics, construction experienced the highest number of insolvencies in the year to October 2025.
The Insolvency Service said while the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period. The rate in the year to the end of November 2025 was 52.9 per 10,000 companies.
In Scotland, there were 11 construction company insolvencies in November 2025, six fewer than the 17 recorded in October 2025, and accounting for 11.2% of all insolvencies in the country.
The number of Scottish construction insolvencies for the 12-month period to November 2025 was 186. This was a 12.3% decrease on the 212 recorded in the year to November 2024 and a 10.1% decrease on the 207 in pre-pandemic 2019.
Within the industry, firms classified as providing specialised construction activities are consistently the most affected across Great Britain. However, analysis shows that their numbers are proportional to their overall share within the construction sector.
This category includes companies providing a range of work, typically on a subcontract basis, from demolition and site preparation to electrical and plumbing installation, and finishing work like plastering, painting and glazing.
The Insolvency Service also publishes figures for Northern Ireland, but not with sector breakdowns.
