New data from Red Flag Alert reveals the latest national, regional and sub-sector construction insolvencies in the UK.
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Below, we explain this month’s figures in more detail. Examine the national outlook, regional hotspots, and sub-sector trends that matter most to your firm.
A total of 304 construction companies dissolved in September 2026, representing a 21% year-on-year decrease and the fourth lowest number of monthly insolvencies over the past 12 months. It’s the first monthly decrease since June 2026.
Construction insolvencies tend to dip at this time of year, and 2026 is no exception. September’s 304 failures sit within 1.5% of comparable figures for 2021, 2024 and 2025. The pandemic-hit years of 2022 and 2023 ran 15% and 7% higher, so this fall marks a return to normal.
The ‘Construction of domestic buildings’ sub-sector saw the biggest increase in insolvencies compared to September last year, rising from 52 to 58 (a 12% increase). The ‘Development of building projects’ sub-sector saw the biggest decrease in insolvencies, falling from 58 to 38 (a 51% drop).
The North West region saw the sharpest decrease in insolvencies, falling by 41 (58%) compared to last September. The North East and West Midlands regions also saw big decreases, falling 50% each. Scotland saw the biggest increase in insolvencies, rising from 5 to 8 (60%) compared to the same period.
“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.”
While traditional credit agencies rely on outdated financial statements and lagging indicators, Red Flag Alert combines unpublished court data, real-time payment behaviour, and predictive insolvency scores to flag risks months ahead.
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