UK van market update: October 2026

Van registrations
25,510 new vans were registered in October, up 11.4%. That follows September's 49,704, the busiest month of the year. So far in 2026, 276,885 new vans have been registered, up 4.8%.

Vans from 2.5 to 3.5 tonnes, which covers most medium and large panel vans, rose 12.9% to 18,560. Pickups fell 17.7%, and small vans fell 11.7%.

Interest rates
The Bank of England raised Bank Rate from 3.75% to 4% on 5 November, by 8 votes to 1. It's the first rise since August 2023. Inflation rose to 3.5% in September, driven mainly by energy prices. The Governor said this isn't the start of a long run of rises, but that another is fairly likely unless the Middle East conflict is resolved.

For van buyers, Bank Rate feeds through to hire purchase and lease rates. If you're funding vans through a lender or broker, it's worth getting quotes fixed now.

Diesel
The average price of diesel passed £2 a litre for the first time in early October, according to the RAC, and was 199.9p on 9 October. That's about 57p a litre higher than before the Iran conflict began.

The Budget extended the 5p fuel duty cut and freeze to 1 July 2027, so the 3p rise that was due on 1 January won't happen.

What the Budget changed
Full expensing stays. Companies can still deduct 100% of the cost of a new van in the year they buy it.
First-year allowance rises to 50% for spending from 1 January 2027. This mainly helps sole traders, partnerships and some leasing businesses.
From April 2027: van tax rises with RPI, the Van Benefit Charge rises with CPI, company vans with private use must go through payroll, and the business mileage rate above 10,000 miles rises from 25p to 35p.
How these apply depends on how your business is set up. Check with your accountant.

Electric vans
Electric vans had their best October yet, with 3,369 registered, up 58%. That's 12.9% of the market in October and 11.0% of the year so far, against a ZEV mandate target of 24% for 2026. The government will respond to its review of the mandate by the end of the year, with any changes from 2027. The Plug-in Van Grant runs until at least 2027.

What it means if you're buying vans
Funding just got dearer, and may rise again. If you're using HP or a lease, fix the quote before it moves.
Running costs are up. With diesel near £2, payload and fuel economy matter more when choosing between models.
The tax position on new vans is settled. There's no reason to wait for a better rate on full expensing.
Stock is moving. The market is up 4.8% on last year. If a specific van suits you, availability won't wait.

How Portal can help
We don't sell what we have. We source what works. We're independent, so we compare suitable vans across suppliers and give you a price plus VAT with the delivery position confirmed before you commit. We don't sell finance, so you keep your own lender or broker.

See what's in stock now, with delivery in as little as 7 days, or send us your requirement.

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Sources
SMMT, new van registrations, October 2026
MoneyWeek, Bank of England decision, 5 November 2026
Budget 2026, GOV.UK
RAC fuel prices, via Business Motoring