01 Oct Self-storage growth during COVID-19 and the impact on domestic self-storage
The self-storage sector is experiencing a global growth. Its expected value by 2026 stands at £4.10 billion in Europe alone. In 2019, the SSA reported that there are over 1500 self-storage facilities in the UK. This number is smaller compared to the US or Australia, but the UK still ranks highest in Europe. France and Spain follow with the highest number of facilities in Europe.
So why is the number of self-storage facilities so high in the UK? Why is it expected to keep growing?
The reason is that the domestic need in the country is almost 10 times higher than in continental Europe. Common reasons for using self-storage include divorce and old age. It’s not surprising then that most customers are between the age of 40 and 70. Another reason is that the urban lifestyle is attracting a higher number people each year to move houses. While the sector has seen steady growth recently, it is still young as no major key players have fully established themselves. In the UK there are both larger brands and local self-storage facilities. Local facilities are trusted by the local community, such as Hills Self Storage.
Also, what role does the pandemic play in this industry?
Throughout the pandemic, people have been moving homes, filling up units. New businesses have also been taking over facilities. This movement has filled up many warehouse spaces.
With house prices increasing, tenants moving into new homes are spending more time at home. They have made more use of self-storage facilities to de-clutter their homes. This is to free up space where they live and keeping only what is necessary. Similarly, sellers will need to temporarily store some of their belongings in a storage space while they look for a new home. De-cluttering appears as one of the main reasons for picking a storage facility during the pandemic. This is due to the higher quantity of time spent at home, or people sacrificing home space for a work-from-home set-up.
Self-storage firms have reported an increasing demand as a consequence of the pandemic. To meet these new consumer needs, companies have expanded their sites with new space such as containers.
So, what’s going to happen in the future?
It is predicted that the price for self-storage units will skyrocket in the near future. Prices are also rising due to investors looking to invest in new assets during the pandemic.
However, with the uncertainties that come with Covid-19, for how long will this increase last? The pandemic has made one thing clear: things can be very volatile.
Over the last year, we have seen many businesses closing. On the other hand, brands such as Amazon have profited from COVID. Employers are implementing a flexible remote-working approach which suits employees. The pandemic has changed our office space in many ways. With reports predicting an increase in self-storage use, it is possible that this industry will only become more popular with time.
However, only time will tell.
For more information on Hills Self Storage, call us at 01206 625045 or check our website at hills-selfstorage.co.uk