30th July 2026

📌East Midlands Leads UK Logistics Property Demand

The East Midlands accounted for 38% of UK logistics warehouse take-up during the first half of 2026, reinforcing its position as one of the country’s leading industrial and distribution markets.

Demand reached 5.8 million sq ft across 23 units, representing a 137% increase compared with the same period in 2025. The region continues to benefit from its strategic transport connectivity and sustained occupier demand.

While development activity has increased, only 9% of current pipeline space is expected to complete during the second half of 2026. As a result, availability of Grade A warehouse space remains limited across key logistics corridors, supporting continued interest from both developers and occupiers.

📌 Logistics Recruitment Continues to Strengthen

The UK logistics and freight sector recorded strong recruitment activity during June, with job postings increasing by 35.5%, outperforming growth across the wider employment market.

Heavy Goods Vehicle (HGV) driver vacancies also increased by 20.8% quarter-on-quarter, reflecting continued demand across both long-haul and last-mile distribution networks as businesses prepare for the autumn trading period.

Looking ahead, 51% of logistics employers expect to increase headcount over the next six months. At the same time, many organisations continue to report rising employment costs, including the impact of higher National Insurance contributions, reinforcing the importance of workforce planning and operational efficiency.

📌 Retailers Review EU Fulfilment Strategies Following Low-Value Import Changes

The introduction of the European Union’s revised low-value import arrangements on 1 July is prompting many UK retailers to review their fulfilment and distribution strategies for shipments to EU consumers.

Businesses are assessing how the new €3 customs charge on eligible low-value business-to-consumer imports may affect shipping models, landed costs and the customer experience, particularly for consignments containing multiple product categories.

In response, some higher-volume retailers are exploring greater use of EU-based fulfilment centres and local inventory holding to simplify customs processes, manage import costs and support efficient cross-border deliveries.