According to today's news article on www.costar.com the UK’s self storage industry is flourishing.
It said: "With UK residents renting four times more space per person than those in France, and 10 times more than counterparts in Germany, according to Cushman & Wakefield and the Self Storage Association UK (SSA UK).
The UK Annual Industry Report, now in its 11th year, collected survey responses from 72 separate operators covering 466 self storage facilities, and for the first time also includes a survey completed by 2,127 self storage customers, providing clear insight into the market and the dynamics driving it.
The findings show the UK now has 42.2m sq ft of lettable space, which totals 47% of all self storage space across Europe.
With demand for this flexible space increasing, 24 new large self storage sites with over 200 units opened in the UK in 2016. Large self storage brands in particular have been expanding rapidly in recent years to ensure a larger chunk of the £540m UK market
Nearly two-thirds (65%) of customers are aged between 40 and 65 years old, and 81% are between 35 and 70.
The report finds that this can in part be "attributed to the fact that Millennials are settling down later in life, in terms of establishing more permanent relationships, having children and moving from rented to permanent residences. These life changing moments are often a catalyst for people to use self storage. Divorced or separated people are also more than twice as likely to use self storage as a single person".
The survey of users also highlighted that the most common reason given for taking a unit is lack of room or a need to create space at home (51%), followed by 21% saying they are between properties. The industry also has a high proportion of repeat customers with 39% having previously used self storage.
Occupancy rates across the whole country performed well the report finds, rising from 73.1% in 2015 to 75.8% in 2016, despite overall lettable space also increasing, indicating that demand is still growing faster than supply. London maintained the highest occupancy rates at 81.4%.
Rental rates across the UK also increased by 2.4% to £22.68 per sq ft. This is the third year in a row the industry has shown growth in both occupancy and rental rates, a trend that is likely to continue as companies look to capitalise on the strength of the market."
To read the full article click here.