You’ve owned that site for years. The retail unit that never quite found the right tenant. The warehouse sitting half-empty. The agricultural land with outline permission you cannot seem to shift. Every month, you watch the rates bill arrive while the asset produces nothing.
Meanwhile, you have heard whispers about self-storage. A colleague converted an old industrial unit. An investor friend keeps mentioning the returns. Perhaps you have seen the Big Yellow boxes appearing near retail parks or the purple Safestore signage spreading across the country.
You have considered it. But something holds you back. Perhaps it is the assumption that self-storage is only for the big operators. Perhaps it is the belief that the market is already saturated. Perhaps it is simply not knowing where to start.
Here is the uncomfortable truth: while you hesitate, institutional capital is flooding into UK self-storage at unprecedented levels. Legal & General, Schroders, and major European funds are acquiring and developing sites across Britain. They understand something that many landowners still miss.
The UK has just 0.94 square feet of storage space per person. The United States has over 7 square feet. That gap represents one of the most significant property investment opportunities in Britain today.
But misconceptions are causing landowners to miss this window, or worse, to enter the market badly and lose significant capital. This guide exposes the seven most dangerous myths, grounded in the latest UK industry data from the Self Storage Association UK and Cushman & Wakefield Annual Report 2025, Savills, and PKF Smith Cooper.
Misconception 1: Self-Storage is Passive Income
The Myth
Online influencers and investment gurus promote self-storage as the ultimate passive investment. Buy a site, install some units, and watch the rental income flow while you sip coffee on holiday.
The UK Reality
The UK self-storage industry now employs an average of 2.6 staff per facility, according to the SSA UK 2025 Annual Report. That number has decreased from previous years, not because facilities need less attention, but because 68% of operators are now actively using artificial intelligence and technology to supplement human resources.
The most successful UK facilities operate as high-service businesses. The industry reports a 97% annual churn rate, meaning you replace nearly your entire customer base every year. This demands constant attention to marketing, customer service, and operational excellence.
Consider the operational reality: dynamic pricing systems that adjust rates based on occupancy and demand, security monitoring (with one in three operators reporting a break-in last year according to PKF Smith Cooper), customer enquiry management where businesses responding within one hour are seven times more likely to convert leads, and revenue management that has pushed average returns to a record high of £29.13 per square foot.
What This Means for You
Self-storage can become semi-passive with the right systems and management partner. But the development phase and first 12 to 24 months of operation require significant expertise and attention. The question is not whether to pursue self-storage, but whether to develop that expertise yourself or partner with an operator who already has it. At Wigwam Storage Management, we handle feasibility, development oversight, and ongoing operations precisely because we understand that landowners want the returns without becoming storage industry experts.
Misconception 2: You Need to Find Cheap Land
The Myth
The thinking goes like this: self-storage margins are good, so if you can acquire land cheaply, the project becomes even more profitable. Many landowners believe their existing underperforming site is an automatic candidate because they already own it.
The UK Reality
Site selection accounts for approximately 70% of a facility’s ultimate success. The difference between a good and great location can mean the difference between 65% and 85% occupancy, representing hundreds of thousands of pounds in annual revenue.
UK self-storage customers are highly localised. Industry data consistently shows that 85% of residential customers come from within a three-mile radius of a facility. This makes local catchment analysis critical, not land acquisition price.
The factors that genuinely drive profitability include visibility and traffic counts (the difference between 10,000 and 25,000 daily vehicles passing can transform viability), population density within the three-mile catchment, existing competition and their occupancy rates, local housing characteristics (particularly properties without garages or with limited storage), access for larger vehicles, planning constraints, and future development pipeline in the area.
What This Means for You
If you own land or commercial property, the question is not whether it is cheap, but whether it is right. A professional feasibility assessment examines population, competition, visibility, access, and planning potential before you commit capital. If your site scores well, you have an advantage. If it does not, you have avoided a costly mistake. We offer free, no-obligation feasibility assessments to landowners considering self-storage, because an honest evaluation benefits everyone.
Misconception 3: Build It and They Will Come
The Myth
This worked in the 1980s and 1990s when self-storage was virtually unknown in Britain. Early operators could build on almost any site and achieve profitability through sheer novelty.
The UK Reality
The UK market has matured dramatically. There are now over 2,900 self-storage sites nationwide, with 64.3 million square feet of space generating over £1.2 billion in annual turnover. Major operators including Safestore, Big Yellow, and Shurgard dominate the institutional end of the market.
The SSA UK 2025 Report reveals a challenging environment: enquiry conversion rates have fallen across all mediums (telephone, walk-in, and online). Average occupancy across the industry sits at 75.1%, down 1% year on year. Only mature, well-established facilities achieve the 79% to 85% occupancy rates that deliver strong returns.
The institutional operators have significant advantages: national brand recognition, sophisticated dynamic pricing systems, marketing budgets that independent operators cannot match, and established operational infrastructure. However, they also have weaknesses. They are not nimble, they often lack local knowledge, and customer service at scale tends to be impersonal.
What This Means for You
Success now requires a genuine competitive strategy. You must identify specific advantages over existing competitors, whether that is a superior location, better service model, niche focus (such as trade storage or business customers), or simply understanding the local market better than a distant corporate operator. At Wigwam, our centralised service delivery model allows us to deliver institutional-grade operations while maintaining the responsiveness and customer focus that large operators struggle to achieve.
Misconception 4: Smaller Sites Perform as Well as Larger Sites
The Myth
Many first-time investors look for smaller facilities because they require less capital and seem less risky. The assumption is that a smaller operation will still generate proportionate returns.
The UK Reality
The economics of UK self-storage favour scale. Larger facilities spread fixed costs across more units, supporting stronger cash flow. They allow for diverse unit mix, accommodating customers from those needing a small locker to those requiring large vehicle or business storage. They support the technology infrastructure that modern customers expect. And critically, they generate sufficient revenue to justify professional management.
Consider the numbers: a facility with 15,000 square feet of lettable space at 80% occupancy and £29 per square foot generates approximately £348,000 in annual revenue. A 30,000 square foot facility under the same conditions generates £696,000. But the staffing costs, security systems, insurance, and marketing spend do not double. The larger facility may have 50% higher operating costs while generating 100% more revenue.
The UK market is increasingly favouring sites of 25,000 square feet and above, with mixed-use facilities (combining storage with workspace, trade counters, or last-mile logistics) gaining particular investor interest.
What This Means for You
If your site can only support a small facility, the project may still be viable, but the margin for error is significantly reduced. Small sites can work when they have exceptional locations, minimal competition, or can be operated with minimal overhead through shared management structures. We assess each site on its specific potential, and we are honest when the numbers do not work.
Misconception 5: The UK Market is Saturated
The Myth
You drive past self-storage facilities regularly now. They seem to be everywhere. Surely the opportunity has passed?
The UK Reality
This misconception collapses under the weight of comparative data. The UK has 0.94 square feet of self-storage per capita. The United States has over 7 square feet. Australia has approximately 2 square feet. Even within Europe, the UK leads with a 34.6% market share, but this still represents a materially undersupplied market by global standards.
To reach US levels of provision, the UK would need approximately 18,500 additional stores compared to the current 2,900. Even a modest convergence toward Australian levels would require substantial new development.
But here is the critical insight: self-storage is hyperlocal. 85% of customers come from within a three-mile radius. A city or region may appear to have adequate storage, but until you analyse specific three-mile catchments, you cannot know whether opportunities exist. Modern feasibility tools make this analysis faster and more accurate than ever.
Savills H1 2025 analysis notes that suburban UK markets with high housing density and low facility counts per capita represent particular opportunity areas. Regional markets including Manchester, Birmingham, and Glasgow are seeing increased development activity, with supply expanding beyond traditional urban hubs.
What This Means for You
The market is not saturated. It is maturing. This actually favours informed landowners because sophisticated analysis can identify genuine opportunities that less rigorous operators miss. If your site is in an underserved catchment, you may have a significant first-mover advantage.
Misconception 6: You Must Choose Between DIY or Full Franchise
The Myth
Many landowners believe they face a binary choice: either operate the facility themselves and keep all the profit, or sign up to a franchise or management company that takes a significant cut and removes their control.
The UK Reality
The UK self-storage management landscape offers multiple models, each with distinct implications for landowner involvement, risk, and returns.
Self-operation can maximise profit when done well but requires substantial time, expertise, and ongoing commitment. The learning curve is steep, and mistakes during the critical lease-up period can have lasting effects on facility performance. The SSA UK 2025 Report notes that 15% of UK stores have no permanent staff on site, suggesting many smaller operators are attempting to run facilities remotely, often with mixed results.
Third-party management companies offer operational expertise without franchise constraints, typically for a percentage of revenue or a management fee. The best operators provide feasibility support, development guidance, and ongoing management, allowing landowners to retain ownership while accessing professional operations.
Institutional partnerships, increasingly common in the UK market, pair landowner sites with institutional capital and professional operation. Operators like Flexiss have built portfolios through partnerships with Legal & General, Schroders, and other major investors.
What This Means for You
The right model depends on your objectives, time availability, and risk appetite. Wigwam Storage Management was founded specifically to offer landowners a management partnership that preserves ownership while delivering professional operation. We bring the systems, expertise, and technology; you retain the asset and the majority of returns. This is not a one-size-fits-all industry.
Misconception 7: You Need Industry Experience to Enter Self-Storage
The Myth
Self-storage seems specialised. You do not know the industry. Therefore, you should stay away.
The UK Reality
Self-storage success requires three elements: capital, expertise, and time. The critical insight is that none of these need to be entirely yours.
Capital can come from development finance, institutional partners, or your own resources. Expertise can come from consultants, management partners, or franchise systems. Time investment can be minimised through professional management.
What you uniquely bring as a landowner is the site itself. In a market where development land is increasingly scarce and planning permissions are challenging to secure, this is a genuinely valuable asset. The institutional capital flowing into UK self-storage demonstrates clearly that sophisticated investors are actively seeking site partnerships.
The UK self-storage industry has professionalised precisely because there is demand for expertise from new entrants. Feasibility consultants, development managers, specialist architects, and management companies exist specifically to support landowners entering the sector.
What This Means for You
Lack of industry experience is not a barrier. It is a starting point. The question is whether you have access to the expertise required to make informed decisions and execute effectively. At Wigwam, we work with landowners who bring sites and capital while we bring feasibility analysis, development oversight, operational systems, and ongoing management. The combination produces better outcomes than either party could achieve alone.
The Opportunity
The UK self-storage market grew 7.2% in space last year. Revenue per square foot reached a record £29.13. Institutional capital continues to flow into the sector, with record European investment volumes recorded in 2024.
But this is not a moment for naive optimism. Conversion rates are falling. Competition is intensifying. The days of building on any site and succeeding are over. What remains is a substantial opportunity for landowners who approach the market with accurate information, professional support, and clear expectations.
The seven misconceptions we have examined share a common thread: they stem from either outdated information or overseas models that do not reflect UK market realities. They cause landowners to either miss genuine opportunities or enter the market badly prepared.
The alternative is clear. Understand the genuine economics. Assess your site rigorously. Choose the right operating model for your objectives. Partner with people who have done this before.
Is Your Site Right for Self-Storage?
Nick Grant, co-founder of Wigwam Storage Management, personally reviews every feasibility enquiry we receive. If your site has potential, we will explain the opportunity clearly. If it does not, we will tell you why and save you time and money.
Whether your site ticks two boxes or all seven of our assessment criteria, a 15-minute conversation could reveal an opportunity you had not considered, or confirm that self-storage is not the right path for that particular asset.
We offer free, no-obligation feasibility assessments for UK landowners and commercial property owners.
Contact Nick at Wigwam Storage Management to discuss your site by calling 01608 656 299
