UK construction insolvencies hit 3,912 in year to Jan 2026, driven by low margins, delayed payments, and weak demand.

UK construction insolvencies hit 3,912 in the year to January 2026, making it the hardest-hit sector, with financial strain driven by tight margins, delayed payments, and weak demand. Despite some major contract wins, activity declined across planning approvals, project starts, and awards in the three months to February 2026. Two-thirds of subcontractors report pressure from housebuilders to lower prices post-tender, worsening margin stress. Major suppliers like Travis Perkins saw rising losses, reflecting broader market weakness and ongoing sector fragility.