It’s not just a trend, it’s a booming industry. Co-living, the idea of purpose-built accommodation with shared spaces and social events, is attracting serious money.

Co-living has evolved from the old-school HMOs (houses in multiple occupation) that you might have lived in as a student. Think shared kitchens, maybe a bathroom or two, and not much else.

Co-living is different. It’s like a luxury condo, with communal areas like gyms and rooftop gardens. The focus is on community – events are organised to bring people together and there’s a real sense of belonging.

Fast Growth and Even Faster Future

The numbers don’t lie. Co-living saw a massive 65% growth in 2023, with nearly 2,500 new beds built. That’s almost £1 billion invested in just the past three years!

Knight Frank, the property experts, predict even bigger things. They’re saying that by 2027, the number of co-living beds will triple, hitting more than 20,000. That’s a lot of people looking for a place to live, and a huge opportunity for developers.

The Investors Are Coming

It’s not just the numbers that are impressive. Investors are taking notice, too. Almost half (45%) of institutional property investors are planning to invest in co-living over the next four years, up from 32% right now.

And why not? The market is strong, with high occupancy rates and premium rental yields compared to traditional houses. Plus, co-living has proven to be pretty resilient during economic ups and downs.

Beyond London: The Regional Boom

London is still the co-living king, with 74% of the development already built. But the action is spreading.

Cities like Manchester, Liverpool, Sheffield, and Birmingham are seeing a surge in co-living. They’re attracting a lot of young professionals with good jobs and want to live in vibrant cities.

The Big Picture: Why Co-living Is Taking Off

There are a few big reasons why co-living is taking off:

• People are moving to cities: More and more people are leaving rural areas to live in cities, putting pressure on housing supply.
• People are living alone: Household sizes are shrinking, with more people living alone or in small groups.
• Housing costs are rising: It’s becoming increasingly difficult for people to afford to buy a home, especially first-time buyers.

Co-living provides a great alternative. It’s affordable, it’s social, and it’s often in great locations.

The message is clear: co-living is a growing market with huge potential. If you’re looking for a smart investment, co-living could be the answer.