The UK’s vehicle leasing fleet has continued its steady expansion, growing by 7.2% year-on-year to more than 2.05 million vehicles, according to the latest BVRLA Leasing Outlook.
The report also highlights the central role leasing companies continue to play in the UK’s transition to zero-emission transport.
Battery electric vehicles now account for 48% of the BVRLA car lease fleet, with members funding more than one-third of all EVs on UK roads.
But the report also warns that profitability remains under sustained pressure as EV depreciation, aggressive manufacturer discounting and government policy uncertainty reshape the market.
The report shows the lease fleet reached 2,052,673 vehicles in Q1 2026, driven primarily by an 8.4% increase in leased cars, while the van fleet grew by 3.4%.
The report also emphasised the developing opportunity in the used EV market. Used vehicle leasing is expanding rapidly, particularly through salary sacrifice and personal leasing, providing a valuable outlet for two- and three-year-old electric vehicles while giving more motorists access to lower-cost EVs.
Looking ahead, the industry leaders warn that policy uncertainty remains one of the biggest threats to market stability. The Government’s review of the Zero Emission Vehicle Mandate, combined with proposals for a mileage-based electric Vehicle Excise Duty (eVED), risk undermining confidence on both the supply and demand sides of the market at a time when consistent policy is needed most.
Despite ongoing challenges, the report forecasts continued fleet growth over the next 12 months, with the total BVRLA lease fleet expected to exceed 2.13 million vehicles by Q1 2027.
Toby Poston, BVRLA Chief Executive, said:
“The leasing sector continues to prove its resilience. Fleets are growing and our members remain the engine room of the UK’s transition to zero-emission road transport.
“That progress cannot be taken for granted. Our members continue to invest through difficult market conditions, but long-term success depends on policy that is stable, predictable and supports confidence across both the new and used EV markets.”
Image courtesy of Green Car Guide
