The peak months for the van hire market are generally thought to be from late spring through to late summer. However, new figures released by Darlington-based Northgate plc, one of Britain’s largest van rental firms, suggest that the expected summer peak in demand has not materialised this year.

Northgate’s fleet utilisation rose from 89% in April to a peak of 91% in August. However, to achieve this improvement in utilisation, the company reduced its fleet size by 4,700 vehicles between April and the end of August. Northgate’s fleet now stands at 56,500 vehicles.

That’s an 8% cut in fleet size to achieve a 2% rise in utilisation – suggesting a fall in demand of 6%. Not great for the busiest time of the year.

In an interim management statement, Northgate said that vehicles on hire have fallen from 53,800 at 30 April 2011 to 51,400 at the end of August, a fall of 2,400 units, in line with the fall noted in the four months to August 2010.

Northgate, which serves business van users more than retail customers, is seen by the financial markets as a useful guide to the health of the van rental sector. This news is not surprising but does reflect ongoing challenging trading conditions for the van rental sector.

One good piece of news is that second-hand van values appear to be holding up, at least for good stock. Northgate reported that despite the increased number of vehicle disposals this year, residual values per vehicle remained at a similar level to the previous financial year.