A recent study conducted by Deloitte Real Estate shows that the self-storage sector has grown by 12 per cent over the past year. This growth has been driven by a number of social and business factors that have helped to push revenues in the industry to around £355 million.
Self-storage began in the United States and didn’t arrive in Britain until the 1980s. Today, according to the Self-Storage Association (SSA), there are over 400 companies providing an astonishing 29.6 million sq ft of storage space spread over 815 facilities.
The rise in popularity of self-storage can be attributed to a combination of factors stemming from modern lifestyles.
Individuals may require space to store furniture and belongings due to the growing number of men and women choosing to live alone or those requiring temporary storage space whilst moving home. Relationship breakdown and the increasing tendency to downsize are other factors contributing to demand.
“The tough economic climate has meant that many people have had to downsize and with the average one bedroom apartment offering just 402 sq ft of space, it isn’t surprising that many people have put some of their possessions into secure storage,” said Gareth Hughes of Deloitte.
Businesses can also face storage problems and may turn to the industry as a flexible solution to a lack of space.
“Many businesses have perhaps agreed lets on smaller floor plates than they would have liked, which has meant they have needed to use external facilities for record keeping and surplus furniture storage,” Hughes explained.
The industry has continued to grow despite the introduction of a 20 per cent VAT charge on self-storage, introduced in October of last year, which operators have had to absorb.
The industry provides employment to approximately 2,000 people and has a customer base of 250,000.
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