UK Construction Index
New domestic-building companies in the UK rose 88.2% between 2016 and 2025
A sourced, monthly read on new construction company formations across the UK, drawn from Companies House public records. Covering 19 construction SIC codes from housebuilding to electrical installation. Updated Mar 2026.
Key findings
- New domestic-building companies (SIC 41202) grew from 8,765 in 2016 to 16,500 in 2025, a rise of 88.2%.
- In the 12 months to Mar 2026, 67,736 UK construction companies were incorporated across all 19 SIC codes.
- Formations peaked in 2022 05 at 2,198 domestic-building companies in a single month, the highest on record.
- The all-construction union rose 26.6% over the decade, from 53,566 to 67,829 annually, reflecting broad sector growth across building construction, civil engineering, and specialised trades.
- Year-on-year growth in Mar 2026 was +4.0% for domestic-building companies, continuing the recovery from the 2023 to 2024 cooling period.
Source: Companies House Advanced Search API, under the Open Government Licence v3.0. Figures may be cited with attribution to Trade Tax Specialists. The most recent 2 months of incorporation data are provisional (Companies House indexing lag) and are excluded from the headline figures above.
Domestic-building company formations by year
Each bar shows the number of new companies incorporated in that calendar year under SIC code 41202, construction of domestic buildings. Only complete calendar years are shown. The post-2020 surge reflects the broader rise in company formation during the economic recovery, before a cooling period from 2023.
The monthly trend
The same measure shown month by month, from mid-2015 to the present. The long climb to the 2022 peak is visible, followed by a period of consolidation. The dashed tail marks the most recent 2 months, which are provisional because Companies House indexes very recent incorporations with a short lag.
Construction output data (ONS CGBR series) will be added in a future update once a machine-readable feed is available.
By construction SIC code
The table below breaks down formations by the six most active SIC codes for Mar 2026, showing the spread of new company activity across the sector.
| SIC code | What it covers | New companies |
|---|---|---|
| 41202 | Construction of domestic buildings | 1,692 |
| 41201 | Construction of commercial buildings | 671 |
| 41100 | Development of building projects | 1,260 |
| 43999 | Other specialised construction activities n.e.c. | 863 |
| 43390 | Other building completion and finishing | 843 |
| 43210 | Electrical installation | 916 |
| All 19 codes (deduplicated) | Unique companies across all construction SIC codes | 7,209 |
Methodology and sources
Incorporations. For each month, we query the Companies House Advanced Search API for companies incorporated under each of the 19 construction SIC codes spanning Division 41 (building construction), Division 42 (civil engineering), and Division 43 (specialised construction activities). The deduplicated union counts each company once even where it registers under multiple construction SIC codes. Counts are gross: a company that has since been dissolved still appears on the register, so the series carries no survivorship bias. The most recent 2 months are provisional and excluded from headline figures.
Updated. Incorporations to Mar 2026 (settled data). Data generated Jun 2026.
- Companies House Advanced Search API (Companies House)
Download the incorporation data (CSV)
Free to cite and republish with attribution to Trade Tax Specialists. This page is a data summary and does not constitute tax advice on any individual situation.
Working in construction? See what you could claim back.
The rise in construction companies reflects a broader shift towards limited company working in the sector. Whether you are an established contractor or just setting up, understanding your CIS obligations and entitlements matters. Our calculators help you model your CIS refund and gross payment status eligibility.
Frequently asked questions
What does the UK Construction Index measure?
It counts new companies incorporated each month under 19 construction Standard Industrial Classification (SIC) codes, drawn from Companies House public records. The headline figure tracks SIC 41202 (construction of domestic buildings) as the primary measure, alongside the deduplicated union of all 19 construction SIC codes as a broader all-construction figure. Counts are gross: companies that have since been dissolved remain on the register, so there is no survivorship bias.
Why have construction company formations been rising?
Several factors drive the long-term upward trend. Growing use of limited companies in the construction trades reflects tax planning (a company can be more tax-efficient than sole-trader status at higher profits), the cash-flow advantage a CIS company has in reclaiming its deductions in-year through the Employer Payment Summary rather than waiting for a Self Assessment refund, and broader sector growth in housebuilding and infrastructure. The post-pandemic surge to 2022 also reflects a general rise in new company formation across the UK economy during the recovery period.
Where does this data come from?
All incorporation counts come from the Companies House Advanced Search API. Companies House is the UK register of companies, operated by His Majesty's Government, and its data is published under the Open Government Licence v3.0. The figures are updated monthly as Companies House releases new records, though the most recent two months are provisional due to indexing lag.
What does 'provisional' mean on the chart?
Companies House indexes very recent incorporations with a short lag of four to six weeks. The two most recent months in the series are therefore provisional: they will be revised upward as late-indexed records are captured. These months are shown with a dashed line on the chart and are excluded from all headline figures and decade comparisons to avoid understating the trend.
Am I better off as a CIS contractor operating through a limited company?
It depends on your income level, whether you hold gross payment status, and how you draw money from the business. Operating through a company can reduce your overall tax bill at higher income levels, but brings compliance obligations including Corporation Tax returns, payroll, and Companies House filings. Our CIS tax calculators let you model your own position, and our team can review your specific circumstances.