The real estate sector recorded more company administrations than any other UK industry during the first six months of 2026, according to analysis by law firm Shakespeare Martineau.

Data from The Gazette, the UK’s official public record, shows 336 real estate companies entered administration during the first half of the year, compared with 78 during the same period in 2025.

However, the picture for the real estate sector is far more nuanced than the headline figures suggest, according to Kellie Hatton, commercial real estate partner at Shakespeare Martineau.

While the figures represent a sharp year-on-year increase, they have been significantly influenced by the administration of hundreds of special-purpose property companies linked to the collapse of bridging lender Market Financial Solutions.

Hatton said: “Retail and hospitality operators and parts of the housebuilding market are under genuine pressure as consumer confidence, build costs, planning delays and viability challenges continue to weigh on activity.”

Meanwhile, well-funded investors, strategic landowners, developers of key industrial and infrastructure projects and regeneration projects backed by public intervention funding remain active.

Clients are, however, being more selective, disciplined and cautious about pricing, the report shows.

Hatton added: “The encouraging news is that opportunities still exist. High-quality sites, strong covenants and well-structured schemes continue to attract interest, and clients who are able to take a longer-term view are putting themselves in the best position to move quickly when confidence, rates and funding conditions improve.”

The figures form part of a wider national picture, which has seen UK administrations reach their highest level since 2010.

Across the country, 1,159 companies entered administration in the first six months of 2026, which is a 48% increase from the 783 recorded during the same period in 2025. The total also marks the first time administration volumes have exceeded pre-pandemic levels (940 in 2019).

Nationally, retail remains under considerable pressure despite a slight year-on-year improvement, recording 142 administrations compared with 153 in 2025. Manufacturing (102, up from 77), hospitality (99, up from 80) and construction (88, up from 79) complete the five worst-affected sectors.