UK SELF STORAGE INDUSTRY REPORT 2023

COST OF LIVING

SELF STORAGE

ANNUAL REPORT 2023

OF OPERATORS SEE THE INCREASED COST OF DEBT AND RISING INFLATION IMPACTING FUTURE SELF STORAGE DEVELOPMENTS. 22 %

UTILITIES

COST OF LIVING IMPACT ON SELF STORAGE The increased cost of debt and increasing inflation are impacting real estate investment and development across all sectors. In our operator survey, it was made clear that this is likely to potentially hamper future self-storage development – with 22% citing that as a factor.

In the year to February 2023, electricity prices had increased by 66.7%, while gas prices had increased by 129.4% in the same time period. As a result, 54% of adults are using less fuel in their homes, while 49% find it difficult to afford it. 20% of people reported being occasionally, hardly ever or never able to keep comfortably warm in their home.

A drag on growth is likely to be the result of potentially reduced demand. The inflationary pressures on consumers are likely to tighten discretionary spend, while the increased cost of mortgages will slow the housing market, and negatively impact liquidity. These are likely to create a drag on demand in the sector as a result of fewer trigger points for entry into the self storage market – 35.7% of users cite moving house as a reason for taking self storage space, either as a result of being in between properties, or moving and not having enough space. Furthermore, economic uncertainty has negatively impacted the number of home renovations, with redecorations making up a further 20.3%.

%

I’M MOVING AND I AM BETWEEN PROPERTIES AT THE MOMENT

17.9 %

%

%

I NEED TO CREATE MORE SPACE AT HOME (not including working from home reasons)

IS THE INCREASING COST OF DEBT AND INFLATION IMPACTING THE FUTURE DEVELOPMENT OF YOUR BUSINESS?

GAS AND ELECTRICITY INFLATION

OTHER

140

20.3 %

30.3 %

I’M MOVING AND DON’T HAVE ENOUGH SPACE IN THE NEW HOME

120

12.1 %

NO - WE ARE CONTINUING AS PLANNED

GAS

90

100

MY HOME IS BEING/WILL BE RE-DECORATED AND I NEED TO STORE MY BELONGINGS WHILST IT’S BEING CARRIED OUT FOR BUSINESS REASONS (e.g. to store my business’ stock or equipment, use as distribution hub, etc.)

10.8 %

ELECTRICITY

80

80

6.1 %

70

60

60

11.6 %

40

I NEED TO STORE MY BELONGINGS DURING THE UNIVERSITY HOLIDAYS

50

8.9 %

YES - WE HAVE REDUCED OUR

20

40

17.7 %

I NEED TO CREATE MORE SPACE AT WORK

PLANS TO INVEST IN NEW SITES

0

30

I HAVE RECENTLY HAD AN IMPORTANT LIFE EVENT (e.g. birth of a child, marriage, death/inheritance, separation/ divorce etc.)

-20

20

14.8 %

JUN 2013

OCT 2014

FEB 2016

JUN 2017

OCT 2018

FEB 2020

JUN 2021

OCT 2022

22 %

78 %

10

-40

TO CREATE MORE SPACE TO WORK FROM HOME

0

SOURCE: ONS

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