Greater than 300 building firms went into liquidation in February, newly launched figures present.
Information from the Insolvency Service (IS) reveals that 301 construction-related companies primarily based in England or Wales filed for numerous types of insolvency, principally collectors’ voluntary liquidation.
Specialist contractors made up simply over half of the overall, with 157 instances. Electrical, plumbing and different installers accounted for 62 of them.
Insolvencies within the month included envelope specialist FK Group and Jerram Falkus Development, which specialised in new-build and refurbishment jobs for native authorities and housing associations.
The month-to-month determine was up by 9 per cent on the 277 building firms that went underneath in January, however down by a sixth on the 367 instances in February 2025.
Within the 12 months to the tip of February 2026, some 3,851 building firms folded, down from 4,050 within the yr to the tip of February 2025, the IS stated.
The newest determine meant constructing retained its place as the highest sector for firm insolvencies in England and Wales, making up 17 per cent of the overall.
Wholesale and retail, which incorporates motorcar restore, was the second-worst hit with 3,652 instances or 16 per cent of the overall.
Insolvencies elevated by 7 per cent throughout all sorts of enterprise in March, however a breakdown by sector isn’t but out there from the IS.
Earlier this month, Development Information revealed there have been 36 building sector administrations in March, up from 22 in February.
The information, supplied by Creditsafe, confirmed administrations hit their highest March whole since 2023.
The IS figures embrace administrations but in addition cowl types of insolvency akin to liquidation.
Giuseppe Parla, restructuring and insolvency director at enterprise advisory and accountancy firm Menzies, stated he expects the image to worsen.
“Ongoing tensions within the Center East are driving up vitality and gasoline prices, disrupting provide chains, and preserving inflation stubbornly above the Financial institution of England’s 2 per cent goal,” he stated.
Frozen thresholds and decreased reliefs are additionally intensifying fiscal drag on each companies and people, he stated.
“Collectively, these twin pressures are squeezing margins and suppressing demand, which dangers driving extra companies into the crimson.
“This mix means we’re doubtless on the foot of a mountain of insolvencies, relatively than sitting at its peak. With value pressures nonetheless constructing, shopper demand underneath pressure, and uncertainty persisting, insolvency numbers are prone to stay elevated, or rise additional, within the months forward, posing a critical risk to the broader British economic system.”
Mark Supperstone, a companion at accountancy agency S&W, stated building SMEs particularly are working with little headroom, usually with weak order books and delayed tasks.
“Authorities infrastructure commitments and longer-term planning reform provide some help on the horizon, however present uncertainty, mixed with ongoing geopolitical and provide‑chain disruption, is weighing on confidence.
“The outlook for building companies is difficult and the following few months can be essential for companies making an attempt to protect margins, defend liquidity and place themselves for a restoration,” he stated.
