Construction Insolvencies Fall in December 2024

THE NUMBER of registered construction insolvencies in England and Wales was 291 in December 2024.

The December figure is 8% lower than in November 2024 when 316 construction companies went bust.

Overall, construction firms accounted for 16.3% of all insolvencies in England and Wales in December 2024, according to the Insolvency Service.

By rough comparison, construction firms accounted for 14% of all registered businesses in the UK in 2024.

Total Construction Insolvencies

The total number of construction firms becoming insolvent in 2024 was 4,032. This was an 8.1% decrease on the 4,388 insolvencies recorded in 2023, and a 25.3% increase on the 3,218 in pre-pandemic 2019.

Of all sectors captured in the statistics, construction experienced the highest number of insolvencies in 2024.

The Insolvency Service said while the insolvency rate has increased since the lows seen in 2020 and 2021, it remains much lower than the peak of 113.1 per 10,000 companies seen during the 2008-09 recession. This is because the number of companies on the effective register has more than doubled over this period. The rate in January 2025 was 52.6 per 10,000 companies.

In Scotland, there were 11 construction company insolvencies in January 2025, accounting for 14.7% of all insolvencies in the country. This was four more than in December 2024, and four fewer than in January 2024.

The total for the 12-month period to January 2025 was 198, which was three fewer than the 201 insolvencies in the year to January 2024, and a 4.3% decrease on the 207 in pre-pandemic 2019.

Specialised Construction Most Affected

Within the construction industry, firms categorised as providing specialised construction activities are consistently the most affected across Great Britain.

This includes companies providing a range of work, typically on a subcontract basis, from demolition and site preparation to electrical and plumbing installation, and finishing work like plastering, painting and glazing.

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