June 2025: A decrease in Insolvencies – What Does This Mean For The Construction Industry?

Published on 18^th July 2025

The latest insolvency figures are in, and the construction industry is still under pressure despite a decrease in insolvencies across the board. In the last month, 385 construction businesses became insolvent.  An 18% increase from May 2025.

In June 2025, 2,043 companies across England and Wales became insolvent:

• 8% decrease from April
• 16% lower than May 2024

This includes:

• 1,585 creditors’ voluntary liquidations (CVLs)
• 332 compulsory liquidations
• 111 administrations
• 15 company voluntary arrangements (CVAs)

CVLs still account for 77% of all insolvencies, a sign that although a decrease in Insolvencies, businesses are still choosing to close voluntarily. 

1. Construction: The Most Impacted Sector

In the last month, 385 construction businesses became insolvent.  An 18% increase from May 2025.

That’s more than:

• Wholesale and retail (348)
• Accommodation and food services (295)
• Manufacturing (181)

Looking at the past 12 months to May 2025, 4,056 Construction businesses became insolvent, still a huge 17% of all cases where the sector was identified.

Other industries that experienced a high number of insolvencies in the 12 months to May 2025 were:

• Wholesale and retail trade (3,677),
• Accommodation and food service (3,381),
• Manufacturing (1,973).

The construction sector continues to face the sharpest end of credit risk.  Operating costs, tight margins, and cash flow pressures are forcing many firms to exit the market.

1. What’s Driving the Numbers?

While insolvency rates are still below the 2008–09 peak, the upward trend is clear:

• Insolvency rates are now 52.4 per 10,000 companies (down from 53 in May)
• June saw a 6% drop in compulsory liquidations (still higher than June 2024)
• Administrations were 18% lower than in May 2025, while CVAs were 7% higher

Our Take – What This Means for You

Insolvency numbers may be falling overall, but in the construction industry, the picture is more complex. Many of our members report that despite these figures, things feel ‘eerily’ quiet — a possible sign that financial distress is building beneath the surface.

That’s why it’s more important than ever for credit managers to remain vigilant: reviewing credit control practices, using industry-specific intelligence, and acting on early warning signs.

At Top Service, we go beyond the headlines. As the UK’s only credit reference agency dedicated solely to the construction industry, our unique network of sector-specific trading data and member-led intelligence gives us a crucial edge. Our members frequently report delayed or inconsistent payments from a company up to a year or more before formal insolvency, enabling us to alert others to act early, adjust credit terms, or cease supply altogether.

It’s time to be proactive, and that starts with information specific to your business.

1.  What Should You Do Now? 

• Use credit reports combined with industry insights to stay informed
• Act early on overdue debts – don’t wait for insolvency to strike
• Speak to experts who understand the construction industry
• Track changes in customer behaviour – sudden CCJs, changes in directors, missed payments.

2. Do you want to receive real-time updates to protect your business? Join Top Service today and trade with confidence.

At Top Service Ltd, we help construction businesses:

• Stay one step ahead of insolvency risk
• Minimise debt exposure
• Make confident credit decisions
• Get paid faster

Let’s Talk – With the right tools and real-time industry-specific data, your business can trade safely, without the surprises.