FLA outlook survey: lenders more confident about the year ahead

The Finance & Leasing Association (FLA) asks its members every quarter how they see the next 12 months. For the second quarter of 2026, 83 member firms across asset, consumer and motor finance answered between 26 May and 7 July, and the results were reported in early August.

What firms expected

• New business: 63% expected their volumes to grow over the next 12 months, broadly the same as the 64% who said so in the first quarter.
• Jobs: the largest group of firms, 46%, expected employment to stay at the same level, up from 40% in the first quarter. The FLA's summary doesn't give the shares expecting more or fewer staff.
• The economy: 61% still expected UK conditions to get worse, but the share expecting some improvement rose from 6% to 27%.
• Funding: 66% expected the availability of funding to stay the same. The FLA said firms were more concerned about the cost of funding than its availability.
• Arrears and insolvencies: 63% expected more customers to fall into arrears, down from 67%, and 79% expected more business insolvencies, down from 87%.

What the FLA said

Geraldine Kilkelly, the FLA's Director of Research and Chief Economist, said members remained cautious about the wider economy, but that it was encouraging to see confidence improve since the start of the year.

What it means for hiring

Most firms expected to write more business, while the biggest single group expected their headcount to stay where it is. If you're hiring, our guide on how to brief a recruiter covers how to get a role off to a good start. If you're thinking about a move, read how to prepare for an asset finance interview.

Sources

• Mortgage Soup, Finance confidence improves despite economic gloom, 5 August 2026
• Finance & Leasing Association, Industry Outlook Survey (Q2 2026 edition; the page shows the latest survey)