Savills: new self-storage assets in London are set to be absorbed

Research by international real estate advisor Savills shows that London’s self-storage development pipeline is set to deliver an approximate 14% increase in supply, lifting 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 approximately 1.7 million 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 undersupplied locations will now see new stock coming to market. 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 approximately 88,000 sq ft — equivalent to around 34% of current supply. Savills assesses the ability of local markets to accommodate this new space using its proprietary Self Storage Score (SSSS), which combines supply density and pipeline with a wide range of key demand drivers to benchmark market resilience at a micro-market level.

According to Savills, London remains one of Europe’s most structurally supported self-storage markets, with strong demand underpinned by 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.

This depth of demand is clearly reflected in pricing. 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.”

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. 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.”