Watling’s review of the May 2026 insolvency statistics indicates a moderation in company insolvency activity, with 1,868 registered insolvencies in England and Wales, representing a 10% decrease from April and a 16% reduction year-on-year. The decline was driven by lower levels of both Compulsory Liquidations and Administrations.
Insolvencies on a rolling 12 monthly basis were also down, reducing from 53 insolvencies per 10,000 companies in the 12 months to May 2025, down to 50.9 in the 12 months to May 2026.
Despite reduction in gross insolvency numbers, conditions remain challenging across a number of sectors, with businesses continuing to contend with elevated borrowing costs, inflationary pressures and subdued consumer demand.
Within the PBSA sector, market fundamentals remain broadly positive, underpinned by strong student demand and a shortage of high-quality accommodation in select university cities. Nevertheless, performance is becoming increasingly asset and location-specific. As a result, lenders and investors are placing greater emphasis on individual asset performance, local market dynamics and university demand drivers when assessing opportunities and risk.
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