The asset finance market in the UK saw a 1% year-on-year drop in volume in the 12 months to November 2013, dragged down by a fall in the aircraft and business equipment leasing sectors, according to data released by the Finance and Leasing Association (FLA).

Despite this drop in annual volumes, the penetration rate for the industry continues to improve. According to the data, the annual percentage of capital investment financed by the industry has climbed from 25.1% in 2010 to 29% in the 12 months to September 2013.

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November’s monthly overall asset finance figure was up 2% on November 2012 to £1.78bn (€2.13bn) which helped take the 12 month total to nearly £21.7bn.

November, however, saw a fall in volumes across three sectors: IT equipment lending fell 10% to £87m, machinery lending was down 7% to £342m and car finance was down by 7% as well, to £526m.

In contrast, commercial vehicle finance saw strong growth, rising 18% year-on-year to £458m, which pushed the 12 month lending figure for the sector to £4.8bn, a rise of 3% on the same period the year before.

Business equipment finance also rose in November, up 8% year-on-year to £151m.

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Big ticket items such as aircraft saw the biggest increase in volumes for November to £76m, which was a rise of 39%, but the 12 month figures were still down 45% to a £285m total.

12 month totals have seen more consistent gains with machinery up 2%, commercial vehicles up 7% and car finance flat on the year. Business equipment volumes were down, however, over the 12 months by 5%.