New figures from the Insolvency Service show that 3,805 construction companies in England and Wales became insolvent in the 12 months leading up to the end of June 2026. This figure represents 17% of all company insolvencies where the industry was recorded, positioning construction as the largest single sector for insolvencies.
While the annual number of construction insolvencies is slightly lower than the previous 12-month period, the sector continues to face significant challenges. Recent company failures include Leeds-based Torsion Construction, which entered administration on 29 July 2026, citing liquidity pressures, contract margin pressure, rising input costs, and a wider market downturn. Ardmore Construction Group also faced collapse due to substantial losses and liabilities from historic projects and building safety issues.
The construction industry operates with thin margins and has contended with expensive finance, wage increases, higher material costs, legacy fixed-price contracts, and financially unviable developments. The failure of a substantial contractor can also impact the supply chain, leaving subcontractors and suppliers with unpaid invoices.
Research from the late David Knox FCA, published on Property118, highlighted the role of private landlords in housing demand. Between 1996 and 2013, the number of privately rented dwellings in England increased by 2.5 million, which was approximately 83% of the three million net increase in England's total dwelling stock during that period. The English Housing Survey 2013 noted that the introduction of buy-to-let mortgages led to a greater proportion of newer homes entering the private rented sector.
In 2016, Knox warned that landlords were withdrawing from purchasing properties requiring renovation and no longer buying new properties off-plan. This matters because housebuilding relies on developers and funders being confident of future customers for the homes they intend to build.