Housing crisis fuels £1bn UK self-storage market

By Fifty21 Media

26 May 2023

AdobeStock_309792487.jpeg.jpg

Self-storage has emerged as a thriving industry in the UK, with revenues soaring to nearly £1bn per year. The convergence of the housing crisis, consumerism, and sentimental attachment to possessions has fuelled the exponential growth of this sector.

As an increasingly popular alternative to upsizing homes, self-storage units are sprouting up alongside new housing developments across the country. Projections indicate the addition of at least 280 more storage facilities by 2026, reflecting a substantial 10% increase.

In 2022, UK households and businesses utilised self-storage units to accommodate an astonishing amount of possessions, equivalent to over 2 million square feet (185,000 square meters). This surge in demand boosted revenues for operators like Big Yellow and Safestore by 6.5%, reaching a total of £990 million, according to a study conducted by property agency Cushman & Wakefield and the Self-Storage Association UK.

The convenience of self-storage has become an integral part of urban life for hundreds of thousands of individuals, with two-thirds of customers retaining their units for approximately two years and 16% utilising them for at least five years. The appeal of self-storage extends to both sides of the online retail boom. Online retailers lacking space to store inventory increasingly rely on self-storage facilities to dispatch products to customers.

The staggering cost of housing and the diminishing availability of residential floor space are key drivers of the growing demand for self-storage. This trend has captured the attention of global investors, not only in the UK but also in rent-scarce areas like New York and California, where individuals pay up to $25,000 annually for storage units.

Another contributing factor is people's acquisition of possessions in anticipation of upsizing their homes, only to be thwarted by the challenges of the housing market. Analysts have identified this phenomenon as a significant driver of demand for self-storage services.

A survey conducted among more than 1,800 UK customers revealed that lack of space in their homes was the most common reason for utilising self-storage. This was closely followed by house moves, major life events such as death, inheritance, or divorce, and home renovations. Furthermore, one in five renters are now utilising self-storage for business purposes, particularly e-commerce retailers.

The potential user base for self-storage is vast and varied. The Guardian reported instances of homeless individuals using storage units as temporary bases while couch-surfing or sleeping on buses. Others include a heroin addict who violated the rules by bringing in a mattress to sleep on, a family seeking a quiet space for their son to practice drums, and individuals opting for minimalist living by utilising storage units as annexes for half of their possessions.

Storage facility operators are going the extra mile to integrate storage spaces into urban environments. For instance, the Space Station chain in Shrewsbury has incorporated amenities such as hairdressers, florists, vape shops, tattoo parlours, and even dog groomers into their facilities. Other operators are adding office spaces to their storage complexes. In areas like London's Kings Cross, where numerous residential buildings have recently been erected, storage facilities like Big Yellow are designed with stylish brick facades that rival nearby apartment blocks in architectural merit.

The self-storage industry is often described as "sticky" because many customers initially intend to use the service for a short period, only to find themselves unable to part with their stored belongings. Sentimental attachment to possessions plays a significant role in this phenomenon, as people tend to be reluctant to dispose of inanimate objects.

This sentimentality works in favour of the self-storage sector, encouraging individuals to save and reuse items rather than discarding and replacing them. While the exact percentage of items ultimately discarded remains unclear, there have been instances where customers, after storing their possessions for an extended period, decide to dispose of them and request skip bins for proper disposal.

The profitability of the self-storage industry is on the rise. Big Yellow, the UK's largest operator in terms of floorspace, recorded a remarkable 30% increase in adjusted profits before tax in 2022, amounting to £96.8 million. Similarly, Safestore, the next largest operator, experienced a 14% revenue growth to reach £213 million in the same year. These positive financial indicators have attracted attention from investors, leading to significant transactions such as the sale of a self-storage depot in Camden, London, to Shurgard for £6 million, and the acquisition of properties in Banbury, Wednesbury, Frome, and Amesbury by Storage King for £59 million.

Managing a 500-unit self-storage facility requires only four staff members, making it a relatively efficient operation. According to a Cushman & Wakefield survey, more people cite the cost of living crisis as a reason to use self-storage than those who use it less. The most common age group among customers is between 55 and 64, while the majority falls within the income bracket of £21,000 to £31,000 per year. Demand for self-storage tends to decrease among individuals with higher incomes. Additionally, half of the customers are single, widowed, separated, or divorced. Among domestic customers, approximately 65% have maintained their units for around two years, with 43% using them for a year or less, and an additional 16% occupying their units for over five years.

The ascent of the self-storage industry reflects the evolving needs and challenges of modern living in the UK. As housing prices soar and available space dwindles, self-storage provides a practical and cost-effective solution for individuals to secure their possessions and navigate the constraints of limited living space.

Latest news

1

Airframe Designs appoints four new senior specialists to drive growth strategy ; Jerrod Hartley, Tom Baynes, Phillip le Mottee, Paul Burrow, Martin Stones and Chris Fleet

Airframe Designs appoints four new senior specialists to drive growth strategy

05 Aug 2025

2

Lancashire’s Fhunded VC programme celebrates over £21m of early-stage investments Rory Southworth and Troy Wood from Fhunded, Angelene Woodland from The British Business Bank

Lancashire’s Fhunded VC programme celebrates over £21m of early-stage investments

05 Aug 2025

3

Beever and Struthers and Menzies LLP merge to form a leading national force in accountancy and business advisory services Maria Hallows, executive partner Beever and Struthers, Simon Massey, managing partner Menzies LLP and Caroline Monk, executive partner Beever and Struthers

Beever and Struthers and Menzies LLP merge to form a leading national force in accountancy and business advisory services

04 Aug 2025

4

Edge Hill University tops the North West for employment after graduation once again Edge Hill University graduates

Edge Hill University tops the North West for employment after graduation once again

31 Jul 2025

5

New hire at Two Stories following raft of digital wins Anthony Rigby

New hire at Two Stories following raft of digital wins

31 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

Advantage: AI – A Workshop for Business Leaders – August 14th
Navy--Event Tile.png.png
LBV Hub Seminars
14 Aug 2025 - 14 Aug 2025

Advantage: AI – A Workshop for Business Leaders – August 14th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV 123 Online Graphic
Subscribe now

Weekly news bulletin