1 in 5 British households lives in cramped conditions as cost-of-living crisis worsens
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Amidst the much-documented cost-of-living crisis, the UK is experiencing a rapid boom in the property market as the average house price increased for the seventh consecutive month – up to 12.6%. Consequently, rental prices are on the rise, according to the Office for National Statistics, the average cost of renting in the United Kingdom increased by 2% in 2021, the biggest yearly increase since 2017. Stashbee – the UK’s leading peer-to-peer marketplace for self-storage, garages and parking – has commissioned landmark national research to further understand how these market conditions limit the space we consume, with a focus on the transient nature of the past 24 months.
Stashbee’s research shows that 21% of Brits are in desperate need of extra storage space but cannot afford it due to increasing costs. Serving as testament to this, the UK’s self-storage sector is enjoying the highest occupancy level on record at a staggering 82%, causing average rental rates to soar. The industry has seen an increase of 86p per square foot compared to the 5-year average of 50p per square foot, with many renters seeing the cost of their units nearly quadruple during the pandemic.
Since the easing of social restrictions, the migratory trend of deurbanisation has reverted as Britain witnesses an influx of people relocating back to urban centres, spiking rent prices up by 10.9% – according to research.
Despite the number of homes bought by Londoners outside the capital up 62% last year compared to levels witnessed in 2020, there has been a 31% increase in London property searches in the last 12 months – according to figures from OnTheMarket. As urbanites flock back to the densely populated metropolises of the UK, the age-old perception of small rooms, shrunken ceilings and a general lack of space has seemingly reached breaking point. In light of this, the Centre for London found that 43% of the capital’s residents believe the city to be overcrowded.
Key Stats:
21% (7,249,000) of Brits are in desperate need of extra storage space, but cannot afford the rental costs demanded by warehouse storage facilities
12% (4,432,000) of Brits keep their personal belongings in more than one property due to a lack of space in current living arrangements
14% (3,695,000) of Brits have moved to the regions due to more affordable space
36% (12,038,000) of Brits have excess space in their property with the potential to be rented
The result of increasing demand for storage has meant that nearly 4.5 million Brits are in need to store personal belongings in more than two properties due to a lack of space in their current living arrangements – proving indicative of the increasingly limited access of space the UK is experiencing. In contrast to those who suffer from an absence of space, Stashbee has found that nearly 36% of the nation has excess space in their property that has the potential to be rented out. Stashbee addresses these issues by connecting the users that lack space, with those that have some space extra and are looking for a passive income.
Anthony Paine, co-founder and CEO of Stashbee comments on the impact the rise in cost for warehouse storage facilities has on Britain:
“The pandemic put a renewed focus on our homes and the spaces we live in, and highlighted more than ever that having enough space to live comfortably is not just desirable, it’s essential for a balanced life.
“Whilst the UK’s storage industry is growing, we are still well behind many other countries in terms of the amount of storage space available per person. What’s more, most of this space is dominated by a small number of companies, concentrated in clusters that most people can’t access, and it’s costly. There are clear trends to show that people simply don’t have access to the space they need. Meanwhile there are at least 2.5 billion square feet of unused storage and parking space in this country that could be put to work. That’s the same amount of space as a huge square going from Wembley, to Wimbledon, to Lewisham, to Walthamstow, and back again.”
