Annual turnover in the UK self storage industry has exceeded £1bn for the first time, as a slowdown in housing market activity alongside a continuing cost-of-living crisis fails to dampen customers’ appetite for the easy-access rented space, according to Cushman & Wakefield & the Self Storage Association UK (SSA UK).

The latest self storage industry annual report shows self storage space increased by 8.1% year-on-year as customers continue to find value in self storage to create extra room at home or when moving, or as a cost-effective way of holding stock for businesses, with 73% of customers in 2023 being residential.

An additional 4.5m sq ft of new storage space was added in 2023 taking the overall space to 60m sq ft. The average rental increased slightly to £26.23 per sq ft, whilst occupancy rates dropped by just 2.5 percentage points.

Self storage operators – which include well-known brands such as Big Yellow and Safestore – reported a combined £1.1bn of revenue, with revenue per square foot up 1% as the sector’s growth continued despite ongoing macroeconomic pressures.

Rennie Schafer, CEO, Self Storage Association UK, said: “Whilst the pandemic gains for the self storage industry have softened slightly in 2023, the sector maintains momentum with nearly half of operators expecting the market to improve throughout 2024."