Construction remains the largest contributor to the UK’s insolvency figures, accounting for 16% of all cases in April 2025, with 389 firms entering insolvency. While this represents a marginal decline from March, the pressures facing the industry are far from easing.
Earlier this month, Homes England and Octopus Real Estate joined forces to provide a £150m loan facility aimed at supporting small and medium-sized (SME) house builders. This partnership is designed to offer vital financing to these builders while also promoting sustainability through green building practices. It’s a strategic move to help bolster the sector in a time of increasing pressure, offering a lifeline to SMEs looking to overcome financial hurdles and environmental challenges.
The Wholesale and Retail sector is continuing to feel the pressure, with 372 companies entering insolvency in April 2025. Weak consumer confidence and reduced spending, particularly in non-essential categories, are fuelling a decline in sales as consumers tighten their belts amidst rising prices.
It's clear that 2025 is set to be another challenging year for all sectors. Cost pressures continue to be a primary concern, with growth expected to remain restrained. The uncertainty surrounding global trade, particularly the impact of anticipated US tariffs on key exporters.