Where there’s high demand for parking, such as in busy towns and cities, renting a space that’s just for you is a convenience that can border on the luxurious for some locations. No more driving around looking for spaces or paying premium prices for spaces at peak time – it’s simply where you park your car. 

Throw in the benefits for your staff, visitors and people with disabilities, and it can become an attractive option indeed. Here’s our deep dive into the pros and cons of leasing a long-term parking space in the UK.

What are the benefits of renting a parking space in the UK? 

Renting a parking space is one of those things that has a number of small benefits which add up to a significant justification when taken together. For businesses, there are both soft and hard financial advantages to having your own space. We’d summarise the benefits as:

• Cost predictability – You know how much you’re going to pay for your parking over the course of a year. Parking often has on- and off-peak charges, and they can be expensive at the best of times, but throw in the odd penalty charge for an unexpected overstay, and it can really mount up. Also, the cost is centralised – you’re not constantly collecting parking receipts from multiple sources that your accountant has to wade through.
• Consistency and reliability – A lot of commuters dread the moment when they start to approach their destination, because they know the stress of finding a space is only just beginning. Wouldn’t it be nice to know there’s a space with your name on it? That chilled morning commute reverberates throughout the day.
• Client perks – If you regularly have clients come to your office, it’s a nice touch to tell them where there’s a free parking space that’s guaranteed. It means even more in busy urban centres, especially when it’s close to your location.
• Less staff stress – Similarly, your own employees often get stressed out every morning because they know there’s the risk of not finding a space and being late. And as for nipping out at lunchtime, they probably wouldn’t risk losing their spot if they’ve paid at a meter or in a car park. That issue disappears with a bespoke space.
• Disabled use – Not everyone can use public transport, so having dedicated spaces for clients, employees, partners and suppliers with mobility problems means they can visit you more often, without the hassle.
• Potential tax efficiency – It’s possible that renting parking spaces can be tax-deductible. It’s certainly worth discussing with your accountant or tax advisor.
• Vehicle wear and tear – You and your employees might drive for 20 minutes from their homes to the town centre, then spend another 20 minutes looking for a parking space. That’s double the amount of time the car is running for on the morning commute. Over the course of a few years, that can really add up, and if you lease vehicles with maximum mileage limits, it’s surprising what a difference it can make.
• Security – Leased parking spaces are often behind gates, within managed public car parks, or otherwise located where you can keep an eye on them. That means they are less likely to be stolen or broken into, and that could have a positive effect on your fleet’s insurance premiums. 

So, if some or all of these benefits apply to your situation, it’s easy to see how they can make life easier for everyone involved.

What are the nuances to long-term UK car park rental? 

Despite the clear benefits to leasing parking spaces, there are quite a few factors to take into account, which could affect your ability to use the spaces. To be fair, many are worst-case scenarios, but they can happen, so it’s worth having a contingency plan, just in case.

There are a few ways, for example, in which your parking spaces could become null and void. A real possibility is that the owner of the land could decide that they want to do something else with it, such as start a construction project. Ask the owner if they plan to change the use of the land, or try to secure a contract with a minimum term. A landlord might own multiple spaces, and could offer you a nearby one if they do plan to change its use.

Also check council websites for any planning applications. They aren’t guaranteed to go ahead, so they will usually have separate sections for ongoing plans and decided plans. It can help spot potential changes of use early.

As with all leased and rented property, the price you pay will come under review from time to time. Parking spaces are prone to changes if the land around them is developed, but prices can go up simply due to inflation. All this needs to be factored into your contract.

And what if you turn up at your space and there’s a stranger’s car parked in it? This is something that probably will happen eventually. Often, a polite note will make sure that person doesn’t do it again, and clearer signposting can prevent it in the first place. Managed car parks (which leased spaces are often part of) might have attendants and ANPR equipment, and they do have the power to issue PCNs if they’re accredited British Parking Association (BPA) or International Parking Community (IPC) operators.

These issues are all relatively rare, and a reputable owner like Sorbon Estates will put you in the picture from the start of the agreement, and will give you plenty of notice of any plans to change the use or cost of the spaces. As with everything we do, we value our local relationships and work to make our clients’ lives as simple as possible.

What makes renting better than buying in relation to a car park space? 

Many of the benefits of leasing a parking space that we listed above would also apply to simply owning the land yourself. For sure, it’s often a solution, as anyone with their own driveway at home will recognise. However, there are still some benefits to leasing over owning.

The main drawback of owning a space is the upfront cost (or ongoing mortgage costs). The need for a guaranteed space only really arises when there’s high demand – low-demand areas will have plenty of spaces to park in. And of course, where there’s high demand, land costs are at a premium. It may surprise you to learn that a single parking space in a city centre can be worth tens of thousands of pounds. That’s money that could be invested into your business. 

You’ll also have ongoing costs such as maintenance, insurance, security and so on. When leasing a space, that responsibility is with the land owners.

Owning a plot of land also ties you to that space. If your business relocates, you might be able to sell the parking spaces, but it could be harder to sell than you might imagine. You bought the space to fulfil your own specific needs, and it’s a space that’s close to a particular premises. If the new owner doesn’t want parking spaces, there might not be an instant buyer. Again, when you lease, it’s not your problem.

Conclusion 

Leasing parking spaces for you, your employees and your visitors is something that might not cross your mind, but once you know it’s a possibility, it can become a very attractive option. We’ve gone into the advantages of leasing over owning, and looked at potential hurdles, and we think you’ll probably agree that on balance, it’s a plan that makes sense.

At Sorbon Estates, parking leases are a popular quality-of-life decision for our tenants, and also for people who aren’t tenants but live or work near our plots. If you’re looking for a more reliable, less stressful parking experience in one of our locations, do contact us at your earliest convenience.