Construction insolvencies increased in July 2026, with the sector continuing to record more company failures than any other part of the economy, according to the latest government insolvency statistics.

There were 343 construction insolvencies during July 2026, up 3.3% from 332 in July 2025. Over the 12 months to July 2026, the industry recorded 3,841 insolvencies, accounting for 17% of all company insolvencies and the highest total of any sector.

Specialised construction activities continued to account for the majority of failures, with 186 insolvencies in July 2026. This represented 54% of the construction total, although it was down from 194 in July 2025.

James Hawksworth, Restructuring Advisory partner at RSM UK, said: “Today’s figures shine a light on the construction sector’s diminishing capacity for resilience against economic headwinds. As an energy intensive industry, continued conflict and uncertainty in the Middle East is proving a significant blow for many construction businesses, delaying investment and driving prolonged cost pressures amid an uncertain economic outlook.”

RSM said rising energy and material costs were adding to pressures on already tight margins, while smaller and specialist construction businesses remain particularly exposed to price increases and project delays.

Hawksworth noted that the updated National Planning Policy Framework announced by the Government could provide greater clarity and support new housing delivery, but warned that project viability remains a key concern.

He said: “As increasing energy and material costs squeeze already tight margins, and long-term uncertainties over the wider economy subdue investment appetite, many construction businesses remain in urgent need of near-term relief and support to stay afloat across the coming months.”