THE UK’s largest self-storage firm returned to profit today as it revealed new enquiries and reservations were near to record levels seen in late 2007.

Safestore Holdings unveiled profits of £6.7 million for the six months to April, compared with a loss of £11.7 million a year earlier, after its number of domestic and business customers increased by 6.5% to more than 40,000.

The company, which has 128 stores in the UK and Paris, said demand was driven by increased activity in the housing market as well as factors such as people needing space for a new home office or to rent out a room.

Chief executive Steve Williams added: "An interesting development has been the trend towards people selling their home before purchasing another and, in the interim, moving into smaller rented accommodation.

"This has resulted in a higher level of reservations being made further in advance indicating that self storage is becoming part of the planning process in relation to house moves, not merely reactive to an event."

The length of stay for domestic customers has increased to 84 weeks from 82 weeks, the company said.

Mr Williams said the second half of the year had begun positively with new enquiries and reservations approaching the record rate seen in late 2007.

He added: "It is encouraging that the business has continued to perform well in what is still a challenging market."

The company, which recently secured new and increased bank facilities to August 2013, said it would continue to selectively acquire new sites. Its property portfolio was valued at £655.4 million at the end of April, up 1.2% since October. Shares were 6% higher.