In September 2026, insolvencies in specialist construction activities ticked down to 168, down from 170 in September 2025, constituting 59% of all sector insolvency cases.

In the 12 months to September this year, the construction sector saw 3,873 insolvencies, constituting 17% of all insolvencies in the economy -  the highest of any sector.

Kelly Boorman, head of construction at RSM UK, said: “September’s fall in construction insolvencies, while positive, aligns with an established seasonal trend of numbers dropping in summer, and picking up again throughout autumn. 

“Unfortunately, we are therefore likely to see a significant hike in October as we move away from the seasonal lull.

“While the government’s recent ‘Your First Home’ scheme and plans for new housing and infrastructure projects have boosted industry sentiment, it’s going to take time for these plans to translate into spades in the ground.”

Boorman added: “In the short term, pipelines are healthy, with work delivering historic infrastructure projects and protecting revenue. 

“However, the longer-term picture looks more challenging, with rising build costs and expected interest rate hikes leading to increasing nervousness around viability and access to affordable debt.

“Recent data from Glenigan’s Construction Review shows a concerning 26% decline in project starts compared to the preceding three months, as construction firms grapple with viability concerns, cost concerns and regulatory red tape.”

James Hawksworth, restructuring advisory partner at RSM UK, said: “The headline insolvency figures mask continued pressure further down the construction supply chain. 

“Specialist construction activities represented 59% of all construction insolvencies in September, their highest proportion for over a year. 

“Combined with 21 consecutive months of a headline Construction PMI reading below 50, this suggests the sector is facing entrenched pressures rather than a temporary downturn.”

Hawksworth added: “The latest data for winding up petitions show that one in four petitions issued by trade creditors in the UK are issued in the construction sector, demonstrating that businesses no longer have the capacity to absorb slow payment and increase working capital stretch. 

“Although insolvencies have dipped slightly, the level of creditor action suggests cash-flow pressure remains firmly embedded across the sector, particularly within the supply chain.”