London, Manchester and Edinburgh are the UK cities with the biggest growth potential for co-living accommodation, according to new research from Cushman & Wakefield.
The firm created a ranking of locations by analysing a number of key demand metrics across 18 UK cities with the current highest number of private renters aged between 18 and 35.
London came out on top across a number of metrics, outperforming for post-graduate student numbers, renters aged between 18 and 35 who are earning more than £40k, and the student-to-bed ratio. Manchester ranked second, closely followed by Edinburgh.
Millie Todd, head of UK living research and insight at Cushman & Wakefield, said: “Co-living is extending beyond London and gaining traction in various regions and we expect that to continue. Outside London, Manchester’s co-living pipeline leads the way, while there are several notable complete schemes in the regions including Zinc Works in Bristol, The Gorge in Exeter, Scape in Guildford, and Voder Riverside in Leeds.
“As the cost of debt eases, the market adjusts to recent changes in building regulations, and planning regulations become more clear, we expect co-living investment to rise rapidly. Alongside the demand metrics we’ve focused on to predict future growth potential, it is important to consider land availability, planning, build feasibility and affordable housing agreements. These factors will have a major influence on where the co-living market will evolve.”
The British Property Federation (BPF) produced analysis today highlighting the increased requirement for more co-living space to be delivered across the UK. Off the back of the research produced by the BPF’s co-living working group, the organisation is urgently calling for: the NPPF to provide active support for co-living schemes and require local authorities to include an allocation for co-Living schemes in their local plans; local authorities to include policies supporting co-living in their local plans; and policies to not be too prescriptive and in turn allow for market broad parameters within which to bring forward co-living developments.
The BPF is also calling for affordable housing policies to recognise that co-living meets a different housing need than traditional C3 housing need and a reduced affordable housing offer should be required subject to a covenant that requires units to remain as co-Living for a specified period failing which a clawback payment would be made.
Mark Corea, policy officer at the BPF, said: “Much like build-to-rent, co-living can help make a significant contribution to the UK’s housing need and alleviate the current housing crisis. By catering to parts of the population which would otherwise struggle to find appropriate accommodation, co-living is an accessible and affordable option for many, and should be recognised as such in policy going forward. Only through the continued diversification of the living sector is a critical tool in battling the housing crisis.”
