New figures released today by the Finance & Leasing
Association (FLA) show that consumer finance new business grew in
April 2025 by 1% compared with the same month in 2024. In
the first four months of 2025, new business in this market was 4%
higher than in the same period in 2024.
The credit card and personal loans sectors together reported new
business in April 2% higher than in the same month in 2024, while
the retail store and online credit sector reported a fall in new
business of 7% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of
Research and Chief Economist at the FLA, said:
“The consumer finance market reported modest new business growth
in April as higher vehicle excise duties took effect, and
consumer spending power was hit by higher energy, telephone and
water bills.
“The FLA's Q2 2025 industry outlook survey results were in line
with the previous quarter as 80% of consumer finance respondents
expected some increase in new business over the next year despite
subdued consumer confidence. The prospect of further cuts in
interest rates, strong consumer savings, and the potential for
growth as the UK transitions to greener assets should contribute
to single-digit new business growth by value over the next 12
months.
“As always, customers who are worried about meeting payments
should speak to their lender as soon as possible to find a
solution.”
Table 1: New consumer credit lending
|
|
Apr 2025
|
% change on prev. year
|
3 months to
Apr2025
|
% change on prev. year
|
12 months to Apr 2025
|
% change on prev. year
|
|
Total FLA consumer finance (£m)
|
9,773
|
1
|
30,335
|
6
|
117,737
|
2
|
|
Data extracts:
|
|
|
|
|
|
|
|
Retail store and online credit (£m)
|
692
|
-7
|
1,951
|
-7
|
9,325
|
-3
|
|
Credit cards & personal loans (£m)
|
5,322
|
2
|
15,425
|
4
|
61,767
|
2
|
|
Second charge mortgages (£m)
|
148
|
7
|
471
|
16
|
1,825
|
24
|
|
Car finance (£m)
|
3,132
|
-2
|
11,104
|
9
|
39,696
|
2
|
|
Note to editors:
- FLA members in the consumer finance sector
include banks, credit card providers, store card
providers, second-charge mortgage lenders, motor
finance providers, personal loan and instalment
credit providers.
- In 2024, FLA members provided £156 billion of
new finance to UK businesses and households. £116
billion of this was in the form of consumer
credit representing almost a third of total new
consumer credit written in the UK in 2024.
- Consumer car finance reported in these
figures refers to finance obtained through the
point of sale.
|
|
