Rental and leasing sector set for tough 2026
A new report from the BVRLA has revealed that 63% of the rental and leasing sector expects economic conditions to deteriorate during 2026.
According to its Industry Outlook Report, the rental and leasing sector is bracing for challenging trading conditions this year as the UK economy continues to worsen.
Among its findings, the report revealed that 64% expect residual values of electric cars and vans to continue falling. More than a third (38%) of rental companies expect this to increase demand for LCV hire, while 70% expect to see an increase in electric car volumes in the sector.
Toby Poston, BVRLA chief executive, said: “Hardened by a series of shocks, our sector is more resilient than ever but desperately in search of some stability and certainty. The recent Budget delivered little of either.
“The rapid rate of decarbonisation being enforced through the ZEV Mandate is hurting everyone, with imbalanced incentives, patchy demand, plummeting residual values and a misguided new pay-per-mile tax clouding the horizon.
“Every positive step the government takes seems to be undermined by a bad decision elsewhere. And yet, industry leaders remain optimistic. History shows our sector can advance in the face of intense headwinds. Based on the findings of this report, we should plan for more of the same in 2026.”
