Insolvencies Tick Up in March as One-Off Spike Impacts Figures: March 2026 Update

Published on 20^th April 2026

The latest figures from the Insolvency Service show that company insolvencies rose in March 2026, following a quieter start to the year.

There were 2,022 company insolvencies in England and Wales, up 7% on February (1,895) and broadly in line with March 2025 (1,995).

This increase comes after four months where insolvency levels were lower than typically seen between 2022 and 2025. However, the March rise was heavily influenced by a one-off spike in administrations, driven by more than 100 connected companies in the real estate sector entering administration.

For construction businesses, where projects often rely on interconnected suppliers and developers, this kind of activity highlights the importance of keeping a close eye on the wider network you’re operating in.

Headline figures at a glance

• 2,022 company insolvencies were recorded in March 2026
• Including 299 compulsory liquidations, 1,468 creditors’ voluntary liquidations (CVLs), 235 administrations, and 20 CVAs
• One in 194 companies entered insolvency in the 12 months to March 2026
• Equivalent to 51.6 per 10,000 companies, down from 53.0 per 10,000 the previous year
• Construction remains the most affected sector, accounting for 17% of all insolvencies

Construction: ongoing pressure beneath the headlines

Construction continues to top the list of insolvencies, with 3,851 cases in the 12 months to February 2026, representing 17% of all industry failures.

While March’s headline increase is largely linked to activity in the real estate sector, the underlying pressures in construction haven’t gone away. Tight margins, rising costs, and ongoing delays in payment continue to create a challenging trading environment.

For many businesses, particularly those working across complex supply chains, cash flow remains the key risk, where issues in one part of a project can quickly ripple through others.

What’s driving the March increase?

A closer look at the data shows that March’s rise is not necessarily a shift in the overall trend, but more of a short-term spike:

• Administrations increased sharply (+52% month-on-month, +82% year-on-year), largely due to a cluster of connected real estate company failures
• CVLs (73% of all insolvencies) remained broadly stable month-on-month but are slightly lower than last year
• Compulsory liquidations rose compared to February, but remain below the 2025 monthly average
• Overall levels are now back in line with 2025 averages, following a quieter start to the year

This suggests that while March looks like a jump, the underlying trend is still one of gradual stabilisation rather than escalation.

A longer-term view

The 12-month rolling insolvency rate now sits at 51.6 per 10,000 companies, slightly down from 53.0 per 10,000 a year ago.

Although this is higher than the unusually low levels seen during the pandemic, it remains well below the peak of 113.1 per 10,000 during the 2008–09 recession.

With more businesses operating in the UK than ever before, even a stable rate still represents a significant number of companies under financial pressure.

What this means for construction businesses

While the data suggests some stabilisation overall, the reality for construction firms is that risk remains firmly present, particularly when it comes to customer solvency and payment performance.

In this environment, a proactive approach is key:

• Stay on top of customer credit profiles to spot early warning signs
• Monitor payment trends closely; changes are often the first indicator of stress
• Act early on overdue invoices to reduce exposure
• Review concentration risk across projects and clients
• Keep communication open where payment issues arise

Our view

March’s increase in insolvencies is notable, but largely driven by a one-off spike rather than a broad deterioration in trading conditions.

From what we’re seeing across the construction sector day-to-day, businesses are still navigating a challenging environment, but those with strong visibility over their customers and cash flow are in a much better position to manage that risk.

Effective credit management and timely debt recovery play a key role in maintaining stability, helping businesses protect margins, reduce exposure, and keep projects moving.

How can we help

If you’re noticing changes in payment behaviour or want a clearer view of your risk exposure, our specialist construction credit and debt recovery team is here to support you.

With real-time credit insights and practical recovery strategies, we help you stay in control, protect your cash flow, and make informed decisions with confidence.

Call us today for further information on 01527 503990.