Savills: New Self Storage assets in London are set to be absorbed, supported by strong micro-market demand

Research by international real estate advisor Savills shows that London’s Self Storage development pipeline, including schemes under construction and those with full planning consent, is set to deliver an approximate 14% increase in supply. This would lift provision from around 1.35 sq ft to 1.54 sq ft of maximum lettable area (MLA) per capita. Savills has identified 27 Self Storage schemes with planning permission across London, which, if delivered, would add c.1.7m sq ft of MLA to the existing 237 stores in the capital.

Despite strong city wide fundamentals, supply remains highly uneven across boroughs, with MLA per capita ranging from just 0.30 sq ft in Redbridge to 3.11 sq ft in Hounslow. Overlaying the development pipeline at a micro-market level shows that some previously significantly undersupplied locations will now see new stock coming to market to meet demand. For example, Barnet’s provision is expected to increase from 1.17 sq ft to 1.75 sq ft per capita, while Lambeth is forecast to rise from 1.66 to 1.99 sq ft per capita.

In several boroughs, large pipelines are coming forward where there is already a supply of older generation facilities. In Camden, first- and second-generation stores account for 75% of existing MLA, with a development pipeline of c.88,000 sq ft, which is equivalent to around 34% of current supply. Savills assesses the ability of local markets to accommodate this new space by using its proprietary, granular Self Storage Score (SSSS), which combines supply density and pipeline with a wide range of key demand drivers in order to benchmark market resilience at a micro-market level. The SSSS also classifies Self Storage facilities by generation, which enables operators and investors to identify where opportunities may exist to displace older facilities.

According to Savills, London remains one of Europe’s most structurally supported Self Storage markets, with strong demand underpinned by a combination of constrained living space, high housing costs, small business activity and population growth. Yet its per capita Self Storage supply is currently lower than in some other UK cities, such as Manchester. With a population of approximately 8.9 million, the capital is forecast to grow by 6.5% over the next decade, outpacing many major European cities. Limited new housing delivery continues to place pressure on urban space, sustaining long‑term demand for Self Storage.

This depth of demand is clearly reflected in pricing. Similar to other capital cities, London commands the highest Self Storage rents in the country, with prime Zone 1 rents exceeding £75 per sq ft, Zone 2 above £60 per sq ft, and Zone 3 typically £35-£40 per sq ft.

Ollie Saunders, Head of Self Storage at Savills, says, “Self Storage provides a much‑needed solution to increasingly urbanised, high‑density living and supports SME growth. While the pipeline in London points to a meaningful increase in supply of around 1.7 million sq ft, underlying demand and performance will continue to be driven by highly localised dynamics.

“Demand fundamentals across the capital remain strong, and in many locations there is clear capacity to absorb new stock, particularly where modern, high‑quality facilities are being delivered. There is a noticeable undersupply in East London, and we are seeing the market respond with new developments in areas such as Newham, Redbridge, Greenwich and Bexley.

“With many local markets now supporting over 2.0 sq ft per capita, we expect continued growth and for Self Storage assets to become increasingly visible across London as underserved markets see new stores being opened. With the increase in supply, this reinforces the importance for operators and investors of understanding micro‑markets when assessing the viability and underlying demand in local markets for these buildings.”

Tom Atherton, Strategy & Market Intelligence Manager at Savills, adds, “Savills has mapped and audited every Self Storage facility in the UK, combining this with development pipeline data to assess how local supply and demand dynamics are evolving. Using our Savills Self Storage Score, we can compare market resilience at a micro‑market level. This analysis shows that many areas with incoming supply still remain well supported, with most markets demonstrating sufficient demand depth to absorb new pipeline space.”