304 construction companies dissolved in September 2026, a 21% year-on-year decrease, with year-on-year insolvencies falling 41%.

New data from Red Flag Alert reveals that 304 UK construction companies dissolved in September 2026. This marks a 21% year-on-year decrease and the first monthly fall since June 2026, making it the fourth lowest monthly insolvency total over the past 12 months.

The picture varies by region. Scotland saw the biggest year-on-year increase, with insolvencies rising from 5 to 8 (a 60% increase). At the other end of the scale, the North West saw the sharpest decrease, with insolvencies falling by 41 (58%), while the North East and West Midlands regions both recorded decreases of 50%.

The sub-sector data tells a similar story. The Development of building projects sub-sector saw the biggest decrease, with insolvencies falling from 58 to 38 (a 51% drop), while Specialised construction activities (other than scaffold erection) n.e.c. and Roofing activities' saw falls of 21 (53%) and 12 (92%) respectively. The Construction of domestic buildings sub-sector bucked the trend, recording the biggest increase, with insolvencies rising from 52 to 58 (a 12% increase).

Alex Hoole, Data Scientist at Red Flag Alert, said: "Insolvencies in construction tend to dip at this time of year, and that's exactly what we're seeing. September's 304 failures sit within 1.5% of the comparable figures for 2021, 2024 and 2025. And while insolvencies during 2022 and 2023 were higher (by 15% and 7%, respectively), these are post-pandemic outliers.

The insolvent companies were broadcasting their distress well in advance. Over a third (38%) of September's insolvencies had CCJs against them, totalling £2.26m. Of that, £1.9m was still unpaid at the time of failure - an average of around £20,000 across 97 companies.

The debts sitting behind some of these failures are even more striking. Just 5% of the failed firms carried a combined £72m in recorded debt, and another 7% had £4m outstanding to creditors. So, these were slow-moving crises with a paper trail. And that's precisely the point – insolvency rarely comes out of nowhere, and the cost of not spotting it early is only growing."