The UK leasing industry’s penetration of fixed capital investment reached 28.7% last year, its highest level since 2008, according to the Finance & Leasing Association (FLA).
The penetration figure for 2012 was 3.9 percentage points above the 2010 low of 24.8% but still more than 6 percentage points off the pre-crisis high of 34.8% recorded in 2008.
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The rate was released by the FLA along with figures for new business volume for February which showed new leasing business conducted by the association’s members fell 2% year-on-year to £1.24bn (1.45bn) for deals up to £20m, while the total fell 14% to £1.4bn when including high value transactions.
Taken over the last 12 months, sub-£20m new business was up 4% year-on-year to £18.2bn and remained flat at £21.2bn when including high value deals.
Business volume fell across most asset sectors in February, as much 29% in the commercial vehicle sector, but did gain 21% and 18% growth year-on-year in IT equipment and car finance, respectively.
In a recent survey, FLA members predicted year-on-year new business growth of 10% for 2013 overall.
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By GlobalDataJulian Rose, head of Asset Finance at the FLA, said the penetration rate showed an increasing appetite on the part of businesses to fund growth through leasing and took the opportunity to welcome the UK government’s decision to include leasing in the remit of its latest credit easing programme.
