Monthly construction insolvencies fell below the 300 mark in November 2025 – down on the previous month and on a year-by-year basis.
Office for National Statistics (ONS) data, released today (20th January), shows that 297 firms in the construction sector went under during the penultimate month of last year.
The figure comprised 158 specialist contractors, 123 building companies and 16 civil engineering firms.
The total marked a drop from 362 insolvencies in October and from 321 in the same month the year before.
Mark Supperstone, partner at accountancy firm S&W, said: “Conditions across the UK construction sector remain challenging, despite the easing of insolvency figures shown in today’s release.
“Risk of failure is still a real threat for many businesses, particularly smaller and mid-sized firms operating with limited balance sheet headroom and restricted access to funding.”
He said weak order books, planning delays and cautious client behaviour due to interest rate uncertainty were continuing to suppress workloads.
“Margins remain under pressure from labour shortages, insurance costs and ongoing compliance requirements, with little capacity to absorb further shocks,” he added.
The construction industry recorded the highest number of insolvencies of any sector in the 12 months to November, the ONS said.
With 3,950 failures, the industry was ahead of the wholesale and retail trade, which saw 3,773 firms collapse.
The figure for construction was 23 lower than the rolling total for the 12 months to October.
Across the whole economy, 23,938 company insolvencies were registered in 2025.
This was similar to 2024 and 5 per cent lower than in 2023, which saw the highest annual number since 1993.
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Colin Marrs