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Top Trends from the UK’s Self-Storage Industry
The self-storage industry is continuing to thrive in a difficult environment – that’s the key message from the Self-Storage Association UK (SSSAUK) in their 2023 annual report which has just been released. Here Hamiltons Removals, who offer high-quality storage facilities in East Anglia, focus on some of the report’s key trends.
The Survey Itself
This year’s survey was one of the biggest the association has ever undertaken. It uses information from the 2022 calendar year, although the report itself was compiled in the first two months of this year.
Around one in four of all the self-storage companies across the UK completed the questionnaire, and they account for 40% of the total storage space available. In total, 57 companies, who have 602 storage facilities between them, answered the survey.
The Key Facts and Figures
- The occupancy rate of all self-storage units was stable at 83.3% of the total available space. The report notes that this is a good thing, as companies should always have space available to attract new customers.
- The so-called churn rate has risen slightly but remains below pre-pandemic levels at 81%. The churn rate is measured by the total number of move-outs in a year divided by the total amount of units that were occupied during that period.
- Three out of every four companies now allow you to reserve your unit online.
- A death in the family is still one of the key personal reasons for using self-storage.
- Those people moving house, or renovating their property, are three times more likely to use self-storage than anyone else.
The Challenges
In 2021, the industry was recovering from the challenges posed by the coronavirus pandemic. However, last year the difficulties came from the high rate of inflation, and specifically soaring interest and mortgage rates.
Both of these had a negative effect on house sales, which is one of the key drivers when it comes to booking up storage space. However, in the rental market many tenants have had no choice but to look for smaller properties because of rising rents. This, says the report, will lead to increased demand for storage facilities as the tenants downsize.
Also, as many people are having difficulties with the high cost of living, some renovation projects may be being put on the back burner. The storage companies themselves have highlighted issues with increasing staff and energy costs, which – in some cases – has led to a rise in the rental rates being charged.
What About the Future?
In spite of the difficulties, most providers have good reason to remain optimistic about the remainder of 2023 and next year. Four out of every five consumers say that their self-storage unit offers good value for money, and one in five customers have rented out their unit for more than five years.
There will always be a demand for self-storage (because of life events, such as moving house, divorces and deaths) and businesses will always need somewhere to put their stock. The storage businesses surveyed said they planned to open or acquire more than 100 new stores in the months ahead.
The report also mentions the need for storage companies to offer high-quality customer service, such as being able to buy packaging and other storage materials on-site and allowing commercial customers to carry out business from the unit (possibly via a trade counter).
Storage Facilities in East Anglia from Hamiltons Removals
At Hamiltons Removals, we have two Safe’n’Stored sites at Harleston and Aldeby, both on the Norfolk/Suffolk border. Harleston has self-storage rooms of varying sizes, while Aldeby has self-storage containers ranging from 5’ to 20’ in size, making it ideal for larger items, such as motorbikes and caravans. Both sites are protected by CCTV cameras.
Both depots are now open as usual and our Harleston site sells a range of high-quality packing materials via our online shop. We would recommend you use these if you are storing any furniture and clothing in particular as we stock various specialist products such as sofa covers (which you can also use for moving house) and wardrobe cartons.
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