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A good time to buy into this hidden gem

Self-storage operators have the world at their feet as demand booms for their services
May 11, 2023

“An Englishman’s home is his castle,” so they say. Yet, for an increasing number of English – and British generally – homes are much less grand than that. According to a study by insurer LABC Warranty, the average UK home is smaller than in any decade since the 1930s, and a full 20 per cent smaller than in the 1970s.

Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
  • Strong market fundamentals
  • Potential for growth
  • History of dividend increases
  • Non-Reit USP
Bear points
  • Depth of demand unknown
  • Premium to NAV

Over the last few years, the problem has become worse. Data from the Department for Levelling Up, Housing, and Communities reveals that 3.1 per cent of British homes are overcrowded. The figure is down from an all-time high of 3.5 per cent in 2020 when pandemic restrictions kept many families indoors all under the same roof, but the general trend is upwards.

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