The Top Sectors Seeing Growth from Consumer Finance in 2025

Consumer Finance Fuels UK Sector Expansion in 2025

Consumer finance is set to reshape the economic landscape of 2025, as more UK consumers use retail finance solutions to access products and services across diverse industries. From retail to healthcare, and even into the energy sector, an increasing number of businesses are leveraging finance arrangements to boost sales and enhance customer loyalty.

Leading Growth Sectors

A closer look reveals which UK industries are capitalising on this shift:

1. Home Improvements and Renovation

• Demand for renovations, energy-efficient upgrades and smart technology installations is surging, with finance solutions enabling more homeowners to spread costs.
• Kitchen and bathroom retailers report double-digit increases in financed sales compared to cash payments.

2. Automotive Industry

• Personal contract purchases (PCP) and hire purchase agreements continue to dominate car sales, with electric vehicle (EV) finance products expanding rapidly.
• Dealerships offering tailored finance options have reported increased conversion rates and higher average sales values by up to 25%.

3. Consumer Electronics & Appliances

• High-ticket items, such as next-generation televisions and smart appliances, are increasingly sold through flexible payment plans.
• Retailers report that 40% of customers in this category now use some form of finance at checkout.

4. Healthcare and Dental Services

• Elective treatments, including cosmetic dentistry and private procedures, are more accessible thanks to zero-interest or low-rate financing plans.
• Dental clinics observed a 30% rise in uptake for treatment plans that offer payment over time.

5. Renewable Energy and Green Technology

• Solar panel installations, EV chargers, and home insulation projects are heavily supported by finance arrangements, empowering consumers to adopt sustainable solutions sooner.
• "Green finance" is forecast to grow by 18% year-on-year in this sector.

Why Are These Sectors Thriving?

Several key factors drive the success of consumer finance in these industries:

• Affordability: Finance options break down large expenses into manageable payments, increasing customer access.
• Customer Experience: Quick, transparent approval processes encourage impulse decisions and repeat spending.
• Business Growth: Retailers and service providers see higher basket values and enhanced competitiveness.

Quotes & Key Sources

“Finance solutions are no longer a luxury— they’re an essential tool in modern UK retail,” says Jane Foster, Market Analyst at Retail Economics.

According to a 2024 YouGov survey, 62% of UK adults stated they would be more likely to proceed with a large purchase if a flexible payment option was available.

Recent reports by KPMG and Mintel also highlight:

SectorForecast Growth (2025)Home Improvements15%Automotive11%Consumer Electronics9%Healthcare & Dental8%Renewable Energy18%

Looking Ahead: What It Means for You

As consumer finance becomes a cornerstone in key sectors, both businesses and consumers stand to benefit. UK buyers gain greater flexibility and access to essential goods and services, while businesses realise new growth opportunities.

For those considering a significant purchase in 2025:

• Compare available finance options carefully
• Ask retailers about special offers tied to finance deals
• Review terms to ensure affordable repayment plans

Consumer finance is unlocking economic potential and transforming the way UK consumers shop. Expect this upward trend to continue shaping the market throughout 2025 and beyond.