Demand from third-party logistics (3PL) providers continued to underpin the UK industrial market in the first half of 2025, with 3PLs accounting for 59% of all big-box take-up, totalling 6 million sq ft of grade-A space, and predominantly choosing the Midlands region. New research from real estate consultancy Avison Young highlights the resilience of the logistics sector, with 3PL take-up levels just 2% below the five-year average, despite wider economic uncertainty. The Midlands remains the most active region, capturing 61% of 3PL leasing activity in H1 2025, reaffirming its position as the UK’s logistics heartland. Since 2021, nearly three-quarters (74%) of all 3PL space has been taken in the region, underlining its long-term appeal for large-scale occupiers. Across the wider market, prime headline rents continue to rise, particularly in the Northwest, Southwest and Scotland, where average increases reached 4% over the period. Looking at longer-term trends, 3PLs have accounted for 43% of all UK big-box take-up over the past five years, totalling 31 million sq ft. The top ten 3PL providers alone account for 12.2 million sq ft, or 39% of that total, reflecting the scale and continued importance of the sector’s largest operators. Among the most active is DHL, while Amazon’s footprint in the period stems from a single, large-scale transaction. David Willmer, managing director, industrial at Avison Young, said: “While macroeconomic headwinds persist, the fundamentals of the logistics market remain strong. We’re seeing sustained demand from 3PLs for modern, well-located space, particularly in the Midlands, which continues to lead the way. “Headline rents are holding firm, with prime rents rising by an average of 4% in the Northwest, Scotland and the Southwest, reflecting continued confidence in key regional markets. The sector continues to present opportunity for both landlords and occupiers.”

Work is due to start on a part refurbishment and part new build scheme to deliver 20 affordable homes in Atherstone. The project will be delivered for North Warwickshire Borough Council through a turnkey development agreement between Tamworth-based developers, Cornerstone Partnership and Loughborough-based contractor, Scope Construction Ltd. The scheme will see the regeneration of a former TNT office building into 14 affordable flats and six new build, two bedroom homes to the rear. The redevelopment will incorporate a number of energy efficiency measures. The new build homes will focus on the fabric first, with high levels of insulation, and heating will be “zero gas” with the installation of air source heat pumps. Each new build will have EV charging, whilst the apartments scheme will see a thermal upgrade to the existing building and communal EV charging stations. Two of the apartments to the rear of the existing building have been designed as accessible dwellings. The building, on Long Street, has a Grade II Listed frontage, and as such work will include retention of the existing front windows, secondary glazing, cleaning and protection of the stone frontage and sympathetic repairs/replacement of roof tiles, whilst internal features such as hand rails and three leaded glass windows will be retained and integrated into the development. The enabling works package is now underway, with main works due to start later in July and completion expected in summer 2026. Councillor Denise Clews, the chair of the Housing Working Group, said: “Councillors very much welcome the conversion of the building into flats to meet the needs of local applicants. Having two flats on the ground floor that are accessible for people with disabilities will help us meet diverse needs. “The mews houses will be ideal for families because they are close to facilities and transport. All of the new homes will be offered to households on our waiting list.” Paul Stanford, development director at Cornerstone Partnership, said: “Having delivered other similar turnkey local authority developments in the West Midlands, we are delighted to mark the start of our first partnership project with North Warwickshire Borough Council.  We are committed to making sure our schemes have community impact and this scheme will meet an important local need.” Jim Burman, operations manager for Scope Construction, said: “It is great to be on site in Atherstone today, to mark the start of our partnership with Cornerstone. Scope is committed to helping housing associations and local authorities to deliver affordable and sustainable housing across the Midlands. “We look forward to working with Cornerstone to deliver quality, energy efficient and affordable homes for North Warwickshire Borough Council. We hope it will be the first of many projects we deliver together.”

Kennedy Wilson, in partnership with the Canada Pension Plan Investment Board, has completed a £100m acquisition of nearly 300 homes across three UK sites. This purchase adds approximately 275 units to their growing single-family rental portfolio.

Located in Milton Keynes, Derby, and Cheltenham, the homes were acquired from major housebuilders Dandara and Miller Homes, the latter being an ongoing partner. The deal expands the JV’s portfolio to 1,180 units in just nine months, marking significant progress since its launch in October 2024.

The acquisition brings the JV’s total committed capital to £390m, with properties secured across 13 sites in strategic locations such as Bedford, Cambridge, and Ipswich. High demand for newly completed homes in Norwich and Bedford further solidifies the platform’s strong market position.

Pick Everard has been selected as the sole supplier to lead the design of future prison facilities across the UK, supporting the Ministry of Justice’s (MoJ) plans for capacity expansion. This includes work across category A to D prisons and women’s facilities. The firm will handle both new builds and improvements to existing assets, continuing its long-standing collaboration with the MoJ that spans over 20 years.

The MoJ’s new framework programme, procured through the Crown Commercial Services (CCS) framework, will see Pick Everard provide a wide range of services, including architecture, structural and civil engineering, building services, and environmental expertise. The firm’s track record in delivering prison programmes, such as the New Prisons Programme and projects like HMP Five Wells and HMP Millsike, will be key in meeting the growing demand for secure, rehabilitative facilities.

Pick Everard has also been involved in several other MoJ initiatives, including the design work at HMP Rye Hill and advisory services on fire safety and decarbonisation projects across Central England and Wales. The new appointment reflects the firm’s ongoing commitment to enhancing the UK’s prison estate with future-focused, high-quality designs.