Since the coronavirus pandemic, activity within the Co Living sector has experienced a significant increase, more than doubling in size.

Savills Research has found that since the beginning of the Covid-19 pandemic in early 2020, the sector has witnessed a substantial surge in activity. With 2000 new beds completed in 2022 alone, and a further 4,999 beds currently under construction, the trend is only expected to grow.

Despite the co living boom starting in London, other regions are progressing quickly. Growth cities include Birmingham, Bristol, Glasgow, Leeds, Manchester and Sheffield, which are all metropolitans with a large amount of young professionals - the core target market. There are also co living developments set for smaller cities such as  Brighton and Guildford.

Kosy Co Living is currently spearheading the development of Brighton's first ever co-living urban village, which will serve as a pivotal contributor to the city's co living offering.

The combined count of co living beds in the UK, encompassing both existing and properties at planning stages, has reached 25,021. Out of this total, 3,422 beds are currently operational, while 21,599 beds are in the pipeline for future development. When considering both operational beds and those in the pipeline, the overall size of the sector has almost tripled since 2019 (Savills, 2023).

Earlier this year (Q1 2023), Savills Investment Management surveyed European investors with over €1tn of combined assets under management, and found that 51%  were planning to focus on co living within the next three years - a 13% increase, marking the highest growth rate among all "living" sectors.

What about co living tenants?

There are various factors that are influencing growing interest and demand from tenants. The UK-wide housing crisis includes lack of suitable rental stock and co living offers a modern solution to this for a particular demographic. The social aspect of co living also has strong appeal, the idea of living in a community where you can really get to know people, form friendships and expand your network.

Co living offers modern on-site amenities which other rentals don't have the capacity for, such as areas to socialise, access to a gym, outdoor areas and co working spaces, plus they are already in great locations, typically close to local amenities and transport links.

Many co living buildings also offer all-inclusive bills which simplifies the renting process and often is the more cost-effective rental option when considering all-in living costs. Earlier this year, Rightmove's second most popular search term became "bills included", second only to "pets" allowed, indicating the demand.

What about co living's sustainability?

Co living has some valuable attributes when it comes to Environmental and Social sustainability. Firstly, the social value of living in a community where facilities are shared provides a natural way for people to meet and interact. It isn't surprising that industry research so far has found tenants feel both their social life and quality of life has improved. Co living plays a huge role in combatting urban loneliness, and provides an environment with a focus on mental health and wellbeing.

Furthermore, many co living residences have public amenities in the form of a café, or co working spaces, widening that community reach and social value.

Co living developments tend to be well located to city centres and amenities meaning they are car-free and often have cycle spaces for everyone. This encourages a healthy and active lifestyle whilst significantly reducing reliance on vehicles, and therefore the impact on the environment.

Co living takes up less land area compared to individual housing and can house many people within one building. Buildings are modern and designed to be energy efficient, with the latest technologies and use of recycled, re-purposed or sustainable materials, further enhancing it's environmental attributes.

The efficiencies derived from the shared spaces have the potential to significantly reduce the carbon footprint of residents. According to research conducted by Conscious Co-Living, carbon emissions per household in co living communities were found to be up to one-third lower compared to the average UK household.

Kosy Co Living

Kosy Co Living is at the forefront of this thrilling new era, a significant player actively spearheading the growth and development of the sector with projects in prominent locations such as Bath, Brighton, London, Watford, and several others. Our mission is to build amazing spaces that encourage and facilitate human connection and collaboration, enhance lifestyles and create unforgettable memories for our residents.  Explore all of our projects here.