UK & European Leasing & Asset Finance Market Overview
October 2025
United Kingdom Overview
The UK leasing and asset finance sector continues to play a pivotal role in business investment and economic growth:
Market Size: Total net investment in business equipment leasing across the top 50 UK firms reached £47.7 billion, marking an 8% year-on-year increase.
Sector Performance: Business new car finance and equipment finance rose by 7% and 4%, respectively. Commercial vehicle and IT equipment finance declined by 17% and 11%.
Industry Sentiment: FLA’s Q3 2025 survey revealed a dip in optimism, with only 71% of respondents expecting growth in new business over next 12 months, down from 79% in Q2.
Policy Advocacy: The Finance & Leasing Association (FLA) is urging the UK government to include leasing in the full expensing regime and introduce targeted green tax allowances to stimulate investment.
Regulatory Trends: Financial lessors are adapting to changes in International Accounting Standards, which now require leases over one year to appear on lessees’ balance sheets.
European Market Overview
Europe’s asset finance industry has shown resilience and steady growth despite macroeconomic challenges:
Market Size: The top 50 European lessors reported €349 billion in lease receivables, representing a 2% increase from 2023. The total European market is estimated at €500 billion.
Regional Leaders:
France dominates with 41% of the AFE50 market, home to five of the top ten firms.
Germany saw strong growth from captives like BMW, Volkswagen, and Mercedes-Benz.
Southern Europe (Greece, Spain, Poland) is emerging as a key growth region for SME financing.
Interest Rates: ECB rate cuts in 2024 and expected further reductions in 2025 are making leasing more attractive.
Sustainability & ESG: Enhanced ESG reporting and circular economy regulations are reshaping leasing models.
Digital Transformation: AI, automation, and service-based financing are driving innovation and efficiency.
Strategic Shifts: Groupe BPCE’s acquisition of Societe Generale Equipment Finance (SGEF) highlights ongoing consolidation.