UK bank lending growth expected to hit three-year low in 2027, says EY

EY forecasts that UK bank lending growth will stall due to uncertain economic conditions. Lending growth is expected to slow to 2.9 per cent this year, eventually dropping to a three-year low of 2.2 per cent by 2027. This projected decline is attributed to weaker economic activity and higher energy costs resulting from tensions in the Middle East, which are weighing on demand as borrowers feel the pinch of the current financial climate.