Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Construction Insolvencies Remain High, Raising Concerns for UK Housing Delivery

3,805 construction companies in England and Wales became insolvent in the 12 months to the end of June 2026, according to the latest figures from the Insolvency Service. Construction accounted for 17% of company insolvencies where the industry was recorded, making it the largest single sector.

The annual number of construction insolvencies is slightly lower than the previous 12 months, but the figure still highlights ongoing challenges for the sector. The report notes that nearly 3,800 construction businesses becoming insolvent in a year does not suggest an industry well-positioned to deliver the significant increase in housebuilding that politicians have promised.

Recent high-profile failures include Leeds-based Torsion Construction, which entered administration on 29 July 2026. Torsion employed 115 people and specialised in residential and living-sector construction. Its administrators cited liquidity pressures from delayed capital events, contract margin pressure, rising input costs, and a wider market downturn. Ardmore Construction Group also collapsed, with substantial losses and liabilities from historic projects and building safety issues contributing to its difficulties.

The report highlights that construction operates on thin margins, with businesses facing expensive finance, wage increases, higher material costs, legacy fixed-price contracts, and developments that are no longer financially viable. When large contractors fail, the impact can quickly spread through the supply chain, leaving subcontractors and suppliers with unpaid invoices.

The article also references research from the late David Knox FCA, who analysed official statistics on England’s housing stock. Between 1996 and 2013, the total number of dwellings in England increased by around three million, while the number of privately rented dwellings rose by 2.5 million. This growth in privately rented homes accounted for approximately 83% of the net increase in England’s dwelling stock during that period, according to the Government’s English Housing Survey: Profile of English Housing 2013.