The UK self storage industry has experienced steady growth over the past two decades, with last year’s annual turnover reaching £990 million. Experts predict that the industry could surpass £1 billion in 2023 despite the squeeze on household finances. The housing crisis, shrinking residential floor space and cheap price of self storage services are the most prominent drivers behind the rising trend.
The Factors That Shaped The Sector’s Growth
The Housing Crisis
The UK is experiencing a severe housing crisis caused by the long-term lack of supply, a shortage of new homes, rocketing borrowing costs and ballooning pressures on household budgets. That translates to stubbornly high prices faced by both renters and buyers. As a result, more people are turning to self storage to store their belongings.
“Rabbit Hutch” Homes
In 2015, the Royal Institute of British Architects (RIBA) stated that over 50% of new family houses in the UK are too small for most buyers. These properties are also known as “rabbit hutch”, or “shameful shoebox home” by how incompatibly small for a family life they are.
Moreover, the average new three-bedroom home lacks around 4 metres squared of necessary floor space – equivalent to the size of an extra room, and nothing has changed since 2015.
Cheaper Than Buying, Extending or Renting A Bigger Home
It’s no surprise that when occupants can’t fit all items and belongings in their homes, they will go and find an alternative. With energy and food prices keep going up, upgrading or purchasing a new home is not always a viable option. Hence, self storage services seem to be a rational and cost-effective choice.
According to The Guardian (2023), renting a 90 sq ft self storage unit would cost about £131 in the north of England, and approximately £273 a month in London. That is still considerably cheaper than renting a residential property.
Business and Retail Usage
The rise of e-commerce and online shopping has led to an increase in the number of people starting their own businesses. Many of these businesses don’t have storage capacity at home, and opening a bricks-and-mortar store is not financially feasible yet. This is when self storage comes in to provide a convenient and affordable way to store inventory and business supplies.
Modern Consumerism and Endless Material Possessions
Thanks to the enduring consumerism, Britons have stocked up enough possessions to fill 60 Buckingham Palaces. Coupled with sentimental reluctance to discard inanimate belongings, the self storage industry is to expect more than 10% increase with at least 280 more stores planned between now than 2026.
Changing Lifestyles
People are increasingly moving around the country and abroad for work and other reasons. This can lead to a need for self storage to store belongings while people are in transition.
What Effects Will The Self Storage Industry Boom Have On Businesses?
The boom in the self storage industry is good news for UK businesses. It shows that the sector is growing and that there is a strong demand for commercial space. It also creates opportunities for new businesses to enter the market and for existing businesses to expand.
These are some specific ways that UK businesses can benefit from the boom in the self storage industry:
Flexibility: Self storage offers the flexibility to scale their storage space up or down as needed. This can be particularly beneficial for businesses that are growing rapidly or that experience seasonal fluctuations in demand. This model is also very attractive for small retail or online business owners.
Affordability: Self storage is a relatively affordable way to store business belongings. This can be especially important for small businesses and startups that are on a tight budget.
Convenience: Self storage facilities are typically located in convenient locations, with easy access for businesses and their customers.
Security: One common concern for homeowners is security. By using a self-storage container that is bolted and padlocked within a facility that has its own security measures in place, belongings can be kept secure and free of clutter in the home.
If you are running a business in the United Kingdom, consider how self storage can benefit your business. It can be a great way to save money, save space, and improve efficiency.
Strategically located in Uckfield, East Sussex, with over 300 rooms across four floors, Cube Self Storage provides secure, climate controlled, flexible and cost effective storage solutions for individuals and businesses.
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