Construction sector in England and Wales most affected by company insolvencies

The data showed that self-employed and trader bankruptcies made up the majority of those figures.

In Scotland, where the data runs up to March 2025, revealed that construction firms entering insolvency accounted for 13.55% of all 118 recorded cases.

The knock-on effects for the sector and its ability to hit its housing targets are huge. Earlier this month, a large housing association lost more than £36m as a result of Henley Construct going into administration in 2023.

Alongside the financial hit, Southern Housing said hundreds of affordable homes were delayed as a result of the collapse. Henley Construct went into administration in 2023, citing the Covid pandemic, Brexit and rising construction costs. 

This followed a South East-based maintenance contractor which provides services to social landlords appointing administrators as a result of a “number of financial difficulties and cash-flow constraints”.

Earlier this month, Homes England and Octopus Real Estate agreed to lend £150m to small and medium-sized (SME) house builders. The relaunched partnership between the two organisations focuses on supporting SME builders with loan finance and encouraging green building practices.

Prior to this, Homes England nearly doubled the funding available in its lending alliance with Invest & Fund for SME builders to £47.5m.

The expanded partnership, part of the government’s plans to deliver 1.5 million new homes this parliament, is projected to facilitate the construction of an extra 600 new homes, building on the 107 homes supported through the original lending alliance.