Members of the Finance & Leasing Association (FLA) provided £80.3bn in new lending during the first half of 2025, representing a 4% increase compared to the same period in 2024.
Of the total, £20.2bn was lent to businesses to support investment in machinery, equipment, and vehicles.
Small and medium-sized enterprises (SMEs) accounted for £12.0bn of this lending.
Consumer lending stood at £60.1bn, which included £21.0bn for the purchase of new and used cars.
Non-bank lenders contributed £31.8bn of the total new business, underscoring their growing presence and influence in the market.
In the second quarter of 2025 alone, FLA members delivered £40.2bn in new business, a 2% year-on-year increase.
Over the 12 months to June 2025, total new lending reached £158.8bn, up 4% on the previous year.
Motor finance remained a major contributor, with £27.99bn of new business in H1 2025, marking a 5% rise.
Consumer finance as a whole saw a 5% year-on-year growth in the first half, reaching £60.1bn.
Stephen Haddrill, director general at the FLA, reflected on the broader significance of these results.
He said: “During my time as director general of the FLA, our markets have faced many challenges; firstly, the Covid pandemic, then subsequent supply shortages, a cost-of-living crisis, tariff uncertainty, and indeed regulatory uncertainty.
“However, our members and their markets are resilient – annual new business levels increased from around £140bn a year in 2019 to almost £160bn in our latest statistics.
“This is heart-of-the-economy funding – whether it’s supporting small or micro business investment, high street purchases or helping to buy the family car. It matters because it makes a difference to people in their day-to-day lives.”
