THE TOTAL NUMBER of construction insolvencies in April 2024 was 4,401, according to official figures from the Insolvency Service.

This is a 7.6% increase on the 4,089 insolvencies recorded in April 2023, and a 36.8% increase on the 3,218 in 2019.

Construction Insolvencies Up 7%

Construction has the highest rate of insolvency in the latest figures. In April 2024, 399 construction companies registered as insolvent, accounting for 17.3% of all insolvencies in England and Wales.

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 overall rate between 1 June 2023 and 31 May 2024 was 55.6 per 10,000 companies.

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.

Scotland Insolvency Statistics

In Scotland, there were 17 construction company insolvencies in May 2024, accounting for 14.4% of all insolvencies in the country. This was the same number as in April 2024, and the same as in May 2023.

The total for the 12-month period up to May 2024 was 199, which was a 7.0% decrease on the 214 insolvencies in the year to May 2023, and a 3.9% decrease on the 207 in 2019.

Trader Bankruptcies

Further data released by the Insolvency Service also showed that of the 1,439 self-employed or trader bankruptcies in the year to March 2024, almost one-quarter (338, 23%) were in the construction industry in England and Wales. These were particularly in the building completion and finishing work category, which accounted for 43% of all construction bankruptcies.

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