According to the Insolvency Service, construction remained the worst-hit sector for company failures in England and Wales, with 3.805 insolvencies recorded in the 12 months to June, equal to 17% of all insolvencies across the economy. Wholesale and retail came second with 3.463 collapses over the same period, the agency's data released on 17 July showed.
On a monthly basis, construction firm failures rose 4% in June to 309, up from 296 in May, according to the Insolvency Service. The June total was still 5% below the 325 failures lodged in June 2025, and across all industries there were 1.845 collapses in June, close to the 1.849 recorded in May. Mark Supperstone, partner at accountancy firm S&W, said housebuilding is one of the biggest areas of concern, noting that construction insolvencies have eased in recent months but the sector still accounts for a disproportionately high share of business failures. He pointed to the latest PMI data showing housebuilding and civil engineering as the weakest-performing construction segments, citing higher borrowing costs, low buyer confidence and slow land markets as factors holding back developments. He added that clients exercising caution and delays in investment decisions and planning processes mean firms with work in the pipeline still cannot convert projects into cash.
Kelly Boorman, national head of construction at RSM UK, said political uncertainty and macroeconomic pressures suggest more troubling times could lie ahead, pointing to a lack of visibility across the supply chain as a key challenge amid uncertainty around long-term projects. She said that while short-term pipelines appear stable, a change in government leadership has driven greater uncertainty over future policy, infrastructure spend and housing incentives, dashing hopes of a more settled outlook, and that the lack of clarity over future activity and timelines creates a dilemma for the industry around labour and sub-contractor retention.
Separate data from analysts Creditsafe cited in the report showed 35 construction firms fell into administration in June, up from 22 in May and almost a third higher than the 28 collapses recorded in June 2025. The June total was led by the collapse of CN100 contractor Ardmore, whose parent company Ardmore Construction Group Ltd and trading subsidiaries Landmark Facades Ltd, Ardmore Fitout Ltd, Ardmore Regeneration Ltd and Ardmore Major Projects Ltd entered administration on 11 June, followed by Ardmore Hotels & Commercial Ltd the next day.