The number of registered company insolvencies in England and Wales increased by 7% in March 2026 (2,022) relative to the preceding month (1,895). Insolvency numbers were comparable with the 12 months previous, however, when 1,995 were observed.
Notably, Administrations were 52% higher than in February 2026 and 82% higher than 12 months previously. This was largely influenced by the volume of connected real estate companies entering administration following the insolvency of lender Market Financial Solutions.
March’s statistics represent the first month of insolvency numbers since the escalation of tensions in Iran, which has resulted in well-publicised macroeconomic turbulence. It does not appear that these events have yet filtered through into insolvency numbers, with the uplift in insolvencies between February and March being less than the average absolute change of 10% between consecutive months over the past three years.
Looking into the statistics on a sectoral basis, we note that the ‘Transport & Storage’ sector witnessed a decrease in insolvencies in the 12 months to February 2026, relative to the prior year, with insolvency numbers reducing by approximately 13%.
The reduction in insolvency numbers may reflect the elevated levels in the sector in recent years. Between 2016 and 2020, there were 2,259 ‘Transport & Storage’ insolvencies, rising to 3,811 between 2021 and 2025, an increase of 68% over this timeframe (according to the Insolvency Service statistics).
The reduction in insolvencies over the last 12 months remains positive nonetheless, particularly considering the challenges faced by the industry, notably:
- Elevated fuel costs;
- Driver shortages and increased employee remuneration;
- Rising fleet insurance premiums;
- Exacerbation of ‘wafer-thin’ profit margins;
- Post-Brexit red tape;
- Fleet modernisation risks associated with the transition to electric.
Watling has firsthand experience of supporting both corporate occupiers and insolvency practitioners appointed over businesses within the sector.
Such businesses often hold substantial warehousing accommodation, typically within motorway corridors, where occupational and investment demand is strong. Whilst market conditions have cooled somewhat within the warehousing and distribution markets, the wide pool of occupational demand, coupled with the reducing supply of new development, has meant market activity has remained robust.
We have summarised some of our recent activity within the sector below:
- Currently marketing 120,000 sq.ft. distribution warehouse in Yeovil on behalf of Administrators (https://watling.com/property/former-silverline-tools-premises-boundary-way-lufton-trading-estate-yeovil-somerset-ba22-8hz/)
- Sold 118,000 sq.ft. modern distribution warehouse in Kettering on behalf of Administrators of Knights of Old (https://watling.com/property/2300-2350-kettering-venture-park-kettering-parkway-kettering/)
- Sold 80,000 sq.ft. warehouse in Lincoln on behalf of Administrators of Cartwright Bros Haulage (https://watling.com/property/freeman-road-lincoln-lincoln/)
In each case, we have experienced a depth of demand from both occupational and investor / developer purchasers.
More broadly, despite the challenging economic environment, we continue to see liquidity and transactional activity in the property market for sectors with strong underlying fundamentals.
We have recently launched marketing of a portfolio of convenience store and drive-thru investments, let to undoubted established covenants. We have received a strong level of interest during our marketing campaign.
We’d welcome enquiries from operators across the storage and distribution sectors, and property owners more widely, for guidance and support on how to maximise the value of their property portfolios.
