New half year data from V12 Retail Finance shows UK consumers continued to make significant financial commitments through point of sale finance in the first six months of 2026, with total finance values across the platform rising more than 5% between January and June, compared to H1 2025.
The momentum built through Q1 accelerated into Q2, with every month in 2026 to date having exceeded the equivalent month in both 2025 and 2024. May finished as a record month for the platform, and June has already exceeded that, indicating that finance backed demand remains resilient even as wider market conditions continue to weigh on consumer sentiment.
Beneath the headline figure, V12’s data extends the pattern first identified in Q1: spending is increasingly concentrated in home and healthcare related categories, outpacing more discretionary sectors such as jewellery and music. The signal remains one of a selective rather than a shrinking consumer, with households directing their finance commitments toward areas they consider essential or investment worthy.
“The first half of 2026 has been a period of quiet strength for our platform. Consumers are continuing to make considered financial commitments in the sectors that matter most to them, and retailers in categories such as furniture, home improvements and healthcare are benefiting from that concentration of intent.
“The record months in May and June, along with a new single day approval value record set in April, reflect underlying demand that is proving more durable than some of the broader sentiment indicators might suggest. Consumers are being selective, but they are not withdrawing from significant purchases. Where there is a clear reason to invest, whether in the home, in personal health, or in longer term assets, finance continues to be the route they choose.
“That said, the wider environment remains a headwind. Cost of living pressures, an uncertain interest rate outlook and continuing geopolitical volatility all mean that households are approaching bigger purchases with more deliberation. That in turn places a premium on the flexibility and choice that structured retail finance can offer.”
Andrew Phillips, Managing Director of V12 Retail Finance
Home and property investment continue to anchor demand
Furniture remained the dominant category, representing more than half of all finance values in H1 2026. While year on year growth was relatively modest at 4.4%, the category delivered record finance volumes in both May and June, highlighting the resilience of home related spending even as consumers remain selective elsewhere.
Home Improvements was one of the standout performers in H1, with finance values rising almost 48% year on year. Monthly volumes have accelerated steadily throughout 2026 and now sit comfortably above equivalent levels recorded in both 2024 and 2025. The category’s strong performance suggests that, even in a selective spending environment, consumers remain willing to finance projects that enhance their homes and provide lasting value.
This sustained strength in home related categories is consistent with wider official data. According to the Office for National Statistics (ONS), total construction output grew 0.4% in Q1 2026 compared with Q4 2025, with repair and maintenance rising 3.4% and private housing repair and maintenance up 4.1%, making it the biggest single contributor to the increase.[1] The trend continued into Q2, with repair and maintenance output growing another 3.4% in the three months to April 2026.[2] Separately, ONS retail sales data showed sales volumes rose 1.2% in May 2026, well ahead of market expectations, and were 3.2% higher year on year.[3]
Healthcare finance remains a structural growth story
Health and Dental finance values rose 14.4% year on year in H1 2026, building on the strong momentum reported in Q1 and continuing the category’s longer term growth trajectory. The category now accounts for more than 11% of total platform value and remained one of the strongest performing sectors throughout the first half. Growth was particularly pronounced in February and March, when finance values exceeded equivalent 2025 levels by more than 20%, reflecting continued consumer demand for healthcare and dental treatments despite ongoing pressure on household finances.
The trend reflects a broader consumer shift toward treating health and wellbeing as core household spending rather than as a discretionary category, with retail finance providing an accessible way to manage the cost of higher value treatments over time.
Jewellery stabilises, while other discretionary categories remain mixed
Jewellery, V12’s second largest sector by value, finished H1 broadly flat compared with the same period in 2025, following the softer trends seen across much of the previous eighteen months. Q2 showed a modest improvement, with finance values increasing year on year and June exceeding the equivalent month in 2025, a tentative sign that demand for higher value discretionary purchases may be stabilising.
Other discretionary categories showed a more varied picture. Art recovered strongly in Q2 following a softer start to the year, with second quarter finance values rising more than 7% year on year, supported in part by the timing of gallery collection releases. Music finance values remained slightly below H1 2025 levels, extending a longer running softening trend. Meanwhile, Cycles delivered steady growth in H1 and accelerated significantly during Q2, with finance values almost 18% higher than the corresponding quarter in 2025.
Store visits recover as customer demand remains resilient
V12’s channel data suggests some of the footfall softness noted earlier in the year began to ease during Q2, with store visits increasing in May. This improvement coincided with another record period for the platform, reflecting continued consumer demand for retail finance despite ongoing pressure on household budgets.
The platform also recorded a new single day value record for approvals in April, reflecting both the conversion of a strong retailer pipeline built during Q1 and the underlying strength of demand for structured finance at the point of purchase.
Demographic profile remains broad and stable
The demographic profile of funded finance applicants in H1 2026 remained broadly consistent with recent quarters. The 25 to 54 age range continued to represent the core of demand, accounting for around 70% of all funded applications, with the 35 to 44 age group again the largest individual band at just over 25%. Full time employed applicants made up the substantial majority of funded applications, and homeowners with a mortgage represented the largest single household group.
Married applicants remained the largest marital status category at just under 50%, broadly in line with H1 2025. The share of male applicants rose across Q2, in part reflecting the seasonal weighting of male leaning categories such as cycles and season tickets, which peak in the second quarter.
“What continues to stand out is the breadth of the customer base,” added Andrew Phillips. “The demographic mix we are seeing is consistent with the pattern we’ve observed for some time now. Point of sale finance has become a mainstream tool for managing larger purchases across a wide range of household types, income levels and life stages. That structural breadth, combined with the concentration of growth in home and healthcare, is why we see H1 as a strong indicator of durable underlying demand rather than a short term rebound.”
Category growth broadens across the platform
Growth during H1 2026 was spread across a diverse range of sectors. Home Improvements and Health & Dental were among the strongest performers, while Furniture remained the largest category by value. Cycles delivered steady growth throughout the first half and accelerated in Q2, while Jewellery showed signs of stabilisation following a more challenging period. The breadth of growth across multiple retail segments highlights the continued resilience of consumer demand despite ongoing economic pressures.
