Self storage hereditaments
Source: gov.uk (2025-07-24)

This publication is intended for Valuation Officers. It may contain links to internal resources that are not available through this version.

1. Scope

These instructions are concerned with the assessment of self-storage hereditaments which will take the form of modern warehouse conversions or to purpose built buildings designed to provide a wide range of secure self-storage facilities.

Early self-storage units were developed from standard warehouse units by the addition of extra floors and individual secure areas. Increasingly modern purpose-built centres are being constructed to a high standard with security features and strategically located. Typically, such buildings may be used for domestic and business storage both for short term and longer periods.

This scheme does not cover sites set up to allow individuals and companies to purchase individual units (pods) within the warehouse for investment purposes where the individual units are sold by granting long leases (to individuals or companies known as unit owners or investors). This is significant. as part of the arrangement, unlike the short-term rental model, means that the leaseholder of a unit has overriding rights.

2. List description and special category code

Primary description code: CW2

List description: storage depot and premises or self storage facility and premises

Scat code: 721

Suffix: G

3. Responsible teams

3.1 The valuation and referencing of this class of property is the responsibility of the Non-Domestic Rating Unit.

3.2 The Class Co-ordination team will be available to give advice.

4. Co-ordination

The Class Co-ordination team and the Industrial Valuation Panel have responsibility for this class ensuring effective co-ordination across the business units. The team are responsible for the approach to and accuracy and consistency of Self Storage Hereditament. The team will deliver Practice Notes describing the valuation basis for revaluation and provide advice as necessary during the life of the rating list. Caseworkers have a responsibility to:
- follow the advice given at all times
- not depart from the guidance given on appeals or maintenance work without approval from the co-ordination team
- seek advice from the co-ordination team before starting any new work
5. Legal framework

Planning

Planning authorities take differing views on whether the category falls within Use Class B8 or Sui Generis. This appears to depend on the likelihood of regular access to the hereditament by members of the public – the more regular the public access, the more likely it is to be treated as sui generis.

6. Survey requirements

6.1 Survey data - capture

Hereditaments should be measured to Gross Internal Area (GIA) as defined in the VOA Code of Measuring Practice.

Warehouse units that are separate from the main building, with direct external access for customers, should be captured as main space WHS, as a separate line entry. Other types of accommodation such as reception and office areas should be captured as separate line entries using the appropriate accommodation use code, in accordance with the guidance in VSA standards. Where two or more areas of the same type of accommodation are physically contiguous, those areas should be recorded as a single line entry. Where there are temporary buildings, cabins, and/or storage containers (SCN) etc. located on ancillary land, then the area of this land must not be deducted. The value of the temporary buildings and/or storage containers and the like, must be added in addition to the land value. Depending on the circumstances, this can be done in the valuation either by a suitable line entry or by using other additions. Other additions is the preferred approach. The prices per unit for storage containers (SCN) will need to be input manually. For the 2017 list use £72 and for 2023 £80 per standard 20ft container (2.44m x 6.10m).

For the 2026 list apply £95 for a single standard 20ft container (2.44m x 6.10m), and £140 for a single large 40ft container (2.44m x 12.2m)

For the 2017 list use £72 for a standard size container and, for the 2023 list, use £80.

6.2 Accommodation use codes:

Code

Default text

Purpose

WHS

Warehouse

Main space in both main building and units with external access.

REC

Reception / Entrance

Reception, Entrance and Waiting areas

OFF

Office

Best quality office accommodation commensurate with the age and type of the hereditament, superior to ANO.

ANO

Office

Inferior to main office space (OFF), usually with direct access to warehouse space.

ASI

Internal storage

Store rooms which are not included in the main space area.

ASO

External storage

Store or stores with external access only. If there is internal access to main space, use ASI.

BAY

Loading Bay

Part of building(s) used for the transfer of goods and supplies but otherwise no different to main space. A construction allowance may be needed for an inferior open fronted loading bay or consider using CNP where it is in the nature of a canopy.

MSR

Mess/Staff Room

Eating area for staff use, equivalent to ANO quality.

SCN

Storage Container

Located eternally in yard / ancillary land

Other accommodation use codes may be used, where the accommodation exists, provided they are not inconsistent with the type of hereditament or the floor level upon which the accommodation is situated.

6.3 Beacon characteristics

The scale assumes that the hereditament is fully heated and insulated but has neither air conditioning, nor a fire protection system. Guidance on recording these characteristics can be found in the scale template referred to above. The eaves height of the hereditament should be recorded in the survey data. RSA will make no adjustment for headroom at beacon characteristic level and as the basis (arrived at following the process outlined in 8.0 below) reflects the limited headroom, no additional adjustments for headroom are required at survey unit or line entry level.

6.4 Bulk Class Indicator

All hereditaments should be captured as bulk class “W”, with the appropriate BUT code.

6.5 Sub-location code

The sub location SLFS must be created in Rating Support Application (RSA) for each Billing Authority. This code is the only sub-location that should appear in survey data for self-storage warehouses. This is essential as these properties will be valued using a Type 2 (sub-location) access path to a national address matrix.

7. Survey capture

Rating surveys should be captured on the RSA. Plans and surveys should be stored in appropriate folder within the Electronic Document Records Management (EDRM) system.

8. Valuation approach

8.1. Rental comparison approaches should be used.

8.2. Valuation considerations

The starting point should be the local tone, derived using rental evidence from the most comparable industrial units. This should be based upon the usual valuation-significant factors, such as location, age, size, eaves height, build type and plot ratio etc.

Having identified the most comparable valuation matrix , the next step is to manually find the appropriate unit value using the GIA of the Ground Floor of the hereditament to determine the matrix entry point. The resulting unit value should then be discounted by 35% (unit value from local tone x 0.65) and entered in the national address matrix, along with the address of the hereditament. The scheme is equally applicable to purpose-built hereditaments or those converted warehouses with substantial alterations.

9. Valuation support
- Rating Support Application (RSA)
- Survaid
- Class Coordination team: VP and CCT Members
- National Valuation Unit
Practice note: 2023 - self storage hereditaments

1. Market appraisal

1.1 The concept of self-storage facilities comes largely from the USA where it has developed since the 1970s. This market is less mature in the UK. Since the last Antecedent Valuation Date the number of sites (including container-based) is believed to have increased by around 50%. Of these about a third are in the occupation of the twelve main providers (owning or managing ten or more sites). The market has expanded and matured to meet the demand driven by increasing consumer awareness.

1.2 Contracts can range in length, with 1 month usually the minimum. It’s believed that individuals account for about two thirds of the space taken, with business taking the remainder. It remains the case that the largest concentration of self-storage units is within the M25 area, but provision in other large conurbations continues to grow.

1.3 The impact of the COVID pandemic on industrial property was marked by considerable variation between sectors. The self-storage industry media comment around the Antecedent Valuation Date focused on growth in both revenue and occupancy (based on Quarter 3 2020 results). It was reported that the industry increased occupancy by 2.9 points year-on-year to 79.2%, while also increasing the return per square foot on storage space by over 1.5%.

1.4 Self-storage was deemed to be a part of the logistics chain, classed as an essential service and allowed to remain open under certain conditions. The industry is used by the healthcare and food industries as well as many online and other businesses permitted to operate during the lockdown. It was also deemed as low risk as there is minimal contact between people within a self-storage business.

2. Changes from the last practice note

2.1 The New SCAT code 721 G was introduced in April 2021 to enable self-storage premises to be identified separately from general industrials and warehouses.

3. Ratepayer discussions

3.1 No central discussions with agents for the industry have taken place.

4. Valuation scheme

4.1 Hereditament

The average size of the hereditament is in the order of xx-xxxx-xxxx sq. m. and is multi-floored. The average size of the lettable units is in the order of 7.7 sq. m but sizes do vary. The average number of units per hereditament is in the order of 400-450. Some will have external units - more in the nature of lock up stores - but certainly not all.

4.2 Unit of assessment

The self-storage provider is regarded as being in paramount control of the whole self-storage facility and, consequently, the whole of the building occupied by the provider should be treated as one hereditament.

4.3 2021 valuation scheme

Self-storage assessments shall use the national sub-location code SLFS and attached to the national Matrix A1WSELF1.

4.3.1 Local tone

The starting point should be the local tone, derived using rental evidence from the most comparable industrial units. This should be based upon the usual valuation-significant factors, such as location, age, size, eaves height, build type and plot ratio etc.

Having identified the valuation matrix that incorporates this tone, the next step is to manually find the appropriate unit value using the GIA of the Ground Floor of the hereditament to determine the matrix entry point. The resulting unit value should then be discounted by 35% (unit value from local tone x 0.65) and entered in the national address matrix, along with the address of the hereditament. The scheme is equally applicable to purpose-built hereditaments or those converted warehouses with substantial alterations.

The scale used for all self-storage hereditaments with national sublocation SLFS should be V1WSELFGIA1. In the example at 4.3.2, the comparable warehouse/industrial unit in the locality is shown as £100/m2. The adopted price for the self-storage assessment should be 35% below that (£65/m2). The scale will then factorise the upper floors at 85% for floor level 01, 54% for floor level 02 and 39% for floor levels 03 and 04.

The relativities within the scheme reflect the reduced value of the higher floors because of, for example, restricted headroom. These floors may also remain unfitted pending increased demand.

4.3.2 Self-storage valuation scheme example

4.3.3 Exclusions from the scheme

This scheme and approach are not suitable for traditional purpose-built industrial units (usually multi-storey) which have not had any significant structural alterations and are used for self-storage purposes. These types of properties should be valued in the usual way, using rental evidence from comparable properties.

For the avoidance of doubt, a change of use to a self-storage business within a redundant purpose- built office block will not fall to be valued under this scheme either. These should be valued by reference to the actual rent or tone for similar buildings, applying the scale and matrix applicable to the previous use. The appropriate local sub-location code should be used to ensure that this occurs.

This scheme does not cover sites set up to allow individuals and companies to purchase individual units (pods) within the warehouse for investment purposes where the individual units are sold by granting long leases (to individuals or companies known as unit owners or investors). This is significant as part of the arrangement, unlike the short-term rental model, means that the leaseholder of a unit has overriding rights.

4.4 Plant and machinery

Where rateable plant and machinery (P&M) is identified the Rating Cost Guide should be used to value these items in accordance with Contractor’s Basis principles, including the statutorily-prescribed decapitalisation rate. The relevant spreadsheet “P&M as an addition to another hereditament” on the Non-Bulk Server should be used for this purpose where there are five or more items of rateable P&M.

4.5 Decapitalisation rate

The 2023 prescribed rate of decapitalisation should be used.

Practice note 1: 2017 - self storage hereditaments

1. Market Appraisal

The concept of self-storage facilities comes largely from the USA where it has developed since the 1970s. It is lower key in this country with an estimated 1000 units now in existence [including container based sites] but of these only some 350 or so are in the occupation of the main providers. However it is clear that this has expanded as consumer awareness has increased and the market matured.

The main providers are:

Access; Big Yellow; Lok ’n’ Store; Shurgard Ltd.; Safestore Holdings Ltd. There are, however, many smaller players who may have only one or a small number of stores.

Each tend to have their own website but a better choice is probably http://www.ssauk.com/. This is the site of Self-Storage Association and it includes a Site Finder facility that allows all the sites in a discrete location to be identified. However not all occupiers are members of the association. A lot of other occupiers rely on the internet, yellow pages or similar publications for advertising and attracting customers.

The business

The expression ‘self –storage’ applies to the provision of facilities that offer DIY storage space of varying sizes to members of the public and businesses. Rental is typically on a month by month basis for as long as is required.

Generally the customer is the only person that holds the key and can come and go as frequently as required during specified hours. Stored items are protected by a licence agreement that is provided by the Self-Storage operator. Security is provided by the operator. The facilities usually take the form of large depots, normally prominently sited along major roads close to densely populated residential areas, retail warehousing and light industrial estates.

Flexibility is probably the key to success of the industry with contracts being as short or long as required. (1 month is usually the minimum). There is a rough 70/30 split between individuals and businesses in terms of usage. The largest concentration of self-storage units is within the M25 area but other large conurbations are picking up.

2. Changes from the Last Practice Note

There are no significant changes from the previous practice note.

3. Ratepayer Discussions

No central discussions with agents for the industry have taken place but local offices will be kept advised of developments. It is also anticipated that for Revaluation 2017, this class is likely to be dealt with by a limited number of agents.

4. Valuation Scheme

4.1 Hereditament

The average size of the hereditament is in the order of xx-xxxx-xxxx sq. m. and is multi floored - hence the nature of the scale. The average size of the lettable units is in the order of 7.7 sq. m but sizes do vary. The average number of units per hereditament is in the order of 400-450. Some will have external units - more in the nature of lock up stores - but certainly not all.

4.2 Unit of Assessment

The self-storage provider (Big Yellow, Shurgard and the like) is regarded as being in paramount control of the whole self-storage facility and consequently there will be only one unit of assessment.

4.3 Code of Measuring Practice

Hereditaments should be measured to Gross Internal Area as defined in the Code of Measuring Practice. Where the local modern industrial tone is based on areas measured to NIA, self-storage warehouses should also be measured to NIA for valuation purposes but a GIA survey should also be prepared and retained on the case file.

Warehouse units that are separate from the main building, with direct external access for customers, should be captured as main space WHS, as a separate line entry. Other types of accommodation such as reception and office areas should be captured as separate line entries using the appropriate accommodation use code, in accordance with the guidance standards.

4.4 Valuation Guidance

4.4.1 Local Tone

The starting point should be the local tone, derived from rental evidence of a modern warehouse unit in a similar location with a good standard of eaves height, plot ratio etc. Having identified the valuation matrix that incorporates this tone, manually find the appropriate unit value, using the GIA of the Ground Floor of the hereditament, to determine the matrix entry point. The resulting unit value should be discounted by 35% (Unit value from local tone x 0.65) and entered in the national address matrix along with the address of the hereditament. The scheme is equally applicable to purpose built hereditaments or those converted warehouses with substantial alterations.

The relativities within the scheme reflect the reduced value of the higher floors. These may remain unfitted pending increased demand

4.4.2 Exclusions from the scheme

For the avoidance of doubt, a change of use to a self-storage business within a redundant multi- floor production facility or purpose built office block will not fall to be valued under this scheme and will therefore be valued by reference to the actual rent or tone for similar buildings by reference to the scale and matrix applicable to the previous use. The appropriate local sub-location code should be used to ensure that this occurs.

4.5. Plant and Machinery

There are no proposals for any changes to the existing regulations (SI 2000/540 & SI 2001/ 846) and these should be used where appropriate.

4.6 De-capitalisation Rate

The 2017 prescribed rate of de-capitalisation should be used.