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- Last year, turnover in the self-storage sector exceeded £1.08 billion.
The findings suggest that self-storage is increasingly being used as an alternative to upsizing amid soaring rental costs and property prices.
There was a 49 per cent increase in storage inquiries in the latest quarter compared to the previous quarter, data from Compare My Move claims.
According to data, an increasing number of people are turning to self-storage as a long-term option.
Long: An increasing number of people are also turning to self-storage as a longer-term option.
Last year, turnover in the self-storage sector exceeded £1.08 billion.
The average rental yield was £26.23 per square foot, up 1 per cent on the previous year.
Last year there was 50 million square feet of warehouse space in the UK.
Dave Sayce, founder and CEO of Compare My Move, told This is Money: ‘Higher rents are one of the main factors when it comes to people choosing a smaller property when renting, especially in larger cities.
‘London has seen the biggest rent increase in England, up 11.2 per cent in the last 12 months, yet still has the smallest average apartment size due to the city’s density (84m²).
“On average, the difference between a one-bedroom and a two-bedroom apartment in the UK is around £200 a month; this difference rises to around £450 in London.”
Longer storage leases are “much more popular” than shorter storage leases, Compare My Move said. For inquiries, the most popular timeframe is three to six months.
By contrast, the proportion of people interested in storage deals lasting less than two weeks fell 27.7 percent in the first quarter, according to the research.
A graph showing weekly storage rent by week in 2023, according to Self Storage Association UK
In its 2024 industry report published in April, the Self-Storage Association UK said: “Rental stock in the UK shows no signs of improving.”
He added: ‘Tenant demand is becoming even stronger. There are more renters overall, rising from 3.9 million private renter households in 2011 to 5 million in 2021 (Census 2021) in England and Wales.
“The number of renters is expected to increase, not only due to population growth but also due to affordability constraints in the sales market.”
Worrying: A graph showing projected housing unaffordability
“The combined result of this is that the number of moves has decreased, which will have an impact on storage demand.”
Separate research by KitKeeper last month found that 40 percent of people said they didn’t have enough storage space in their homes.
Michael McCreadie, founder of KitKeeper, said: ‘As the population grows and living space is at a premium, many of us are living in small homes with little storage space.
“Despite this, we are consumers of more belongings than ever, especially when it comes to hobbies, pets and children.”
The cost of self-storage can be high and vary significantly depending on location, size of space required, and duration of storage.
Rental costs have increased in recent months, but the pace of growth has begun to slow.
Average private rents rose 8.7 per cent to £1,262 per month in the year to May, up from 8.9 per cent in the year to April, and below the record annual rise of 9.2 per cent in March 2024, according to official data. published on Wednesday.
