Lending hit £76.7bn in the first half of the year

New figures released by the Finance & Leasing Association (FLA) show that FLA members across the asset finance, consumer finance and motor finance markets provided £76.7bn of new lending in the first half of the year  (H1) 2024, 1% higher than in H1 2023.

£20.1bn was provided to businesses for investment in machinery, equipment, and vehicles, including £12.0bn to SMEs. £56.6bn was provided to households, including £19.8bn for new and used car purchases. Whilst £32.8bn was provided by non-bank lenders.

Stephen Haddrill, Director General at the FLA, said “FLA members have continued to support households and businesses across the UK during a period of significant economic challenges which has seen huge pressure on household real incomes and businesses facing uncertainty about demand and rising costs.

“We welcome the government’s commitment to raising the UK’s economic growth potential and are working to ensure that it recognises the important role that FLA markets will play in making this happen. FLA members are committed to continuing to support businesses as they strive to meet net zero targets. A key part of this will be establishing a much-needed secondary market for electric vehicles. Longer term, regulatory reform, particularly that of the Consumer Credit Act, will be crucial to ensure that the financial services industry can continue to innovate and allow it to better serve those who are unable to access credit.”

 

	Q2 2024	% change on prev. year	H1 2024	% change on prev. year	12 months to Jun 2024	% change on prev. year
Total FLA new business (£m)	38,917	2	76,731	1	152,143	1
By customer:
Business (asset) finance (£m)	10,456	9	20,095	5	39,437	7
Consumer finance (£m)	28,461	-1	56,636	0	112,705	-1
Within the above:
Motor finance (£m)	13,141	0	26,669	0	52,196	2