Self-storage is on the brink of becoming a £1bn-a-year business as Britons pack away more possessions.
The rising cost of other space caused by the housing crisis, along with a national reluctance to let go of inanimate objects, means enough stuff to fill a dozen Shards is currently being stored in containers across the country.
According to a study by Cushman & Wakefield and the Self Storage Association UK, self-storage units are proving cheaper than renting or buying a bigger home and are springing up alongside new housing developments across the UK, with at least 280 more stores planned between now and 2026 – a more than 10% increase.
The UK has the most self-storage per person of any country in Europe, with an estimated 2,231 self-storage facilities in the UK, confirming our status as a nation of hoarders.
Some 2m sq ft of new storage space was added in 2022 taking the overall space to 55.5m sq ft. Average rental rates rose by a below-inflation 4% in 2022 to £27.19 per sq ft per year.
Revenue for operators – including Big Yellow and Safestore – has risen by 6.5% to £990m.
The resilient performance of the industry has caught the eye of major investors including Nuveen, Legal & General and Heitman, which were among those buying portfolios of UK self-storage assets during the year.
Philip Macauley, head of self storage at Cushman & Wakefield, said: “The self-storage industry is constantly adapting to the way we live, and an increasing proportion of people, whether by choice or necessity, are staying in rented accommodation for longer. On-site self storage can be a valuable amenity for residents in large developments, especially if they don’t have cars. The beauty from the perspective of build-to-rent developers, operators and investors is that self-storage also brings into active use dormant basement space below purpose-built residential blocks which is unsuitable for accommodation.”
Rennie Schafer, chief executive of the Self Storage Association UK, added: “The self-storage industry has maintained the gains it made during the pandemic and benefits from higher occupancy and lower customer churn rates than it did previously. The diversity of reasons people have for using self-storage is one of the industry’s greatest strengths and life events like births, couples moving in together, house moves, separations and deaths will all keep occurring regardless of the economic backdrop. That bodes well for the continued success of the industry.”
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