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Urban Living News revisits 12 stories that defined 2025 for the living and urban development sectors.
• January: Pension fund seeds Long Harbour SFR vehicle with £300 million investment
Long Harbour has announced the first close of its Single-Family Housing Fund, which has been seeded by The Korea National Pension Service with £300 million. The investment is the pension fund’s first in the sector. Long Harbour will manage the fund, which has an initial target of up to £600 million of capital to deploy and in total is targeting £1.6 billion.
The Single-Family Housing Fund is targeting the delivery of 5,000 SFR homes across the UK, mainly in the south and south-east of England. Homes will be managed Long Harbour’s operating arm Way of Life, and will be delivered through forward purchases, acquiring forward funding and completed developments.
Jack Spearman, managing director at Long Harbour, said: “Our ambition through the launch of this fund is to address the undersupply of high quality, energy efficient and modern, suburban housing in the UK. As head of this fund, I look forward to playing our part in bringing further institutional investment into UK housing.”
Long Harbour hopes to hold its second close for the fund in 2025, and its final close in 2027. It launched its SFR platform in April 2023.
• February: UK coliving inventory hits 9,000 operational units
Savills’ latest research indicates that there are now around 9,000 operational coliving units across the UK, with approximately 5,500 more under construction.
Savills says coliving is proving particularly appealing to the 20 to 40 age group, including international residents and young professionals, who are drawn to the convenience, flexibility, and social aspects of the offering. Other pull factors for residents include the fact that many operators offer all-inclusive rents covering bills and council tax, as well as the social opportunities available due to the shared communal spaces in schemes.
The sector has emerged as a timely solution within the wider rental market, with Savills reporting a 43 per cent increase in rents across London and the UK’s Big Six cities over the last three years. This has been driven by a 15 per cent reduction in rental stock compared to 2019, accelerated by smaller buy-to-let landlords leaving the sector. In London, PRS stock contracted by 3.5 per cent between 2021 and 2023, marking the first decline in decades and highlighting the need for more housing, and innovative solutions.
Savills analysis shows that all-inclusive coliving opening rents in London range from £1,550 to £1,750 per month in a sample of 11 operational schemes with more than 2,700 units. These rents are comparable to a room in a house share in areas such as Hackney, Hammersmith & Fulham, or Vauxhall (SW8), and so offer an attractive alternative for those wanting their own living space, of a higher quality, combined with a range of amenity and social opportunities. These rents are also comparable to one-bedroom flats in areas like Croydon or Beckenham, after factoring in bills, which are often included in coliving, providing the added benefit of convenience.
The research also shows that cities with strong graduate retention rates, such as London, Manchester and Birmingham, are key markets for coliving developments. London leads the way with a 59 per cent graduate retention rate and a total of 158,000 graduates entering the workforce annually. Many graduates, who are familiar with high-quality PBSA from during their studies, seek similar options as they begin their careers, particularly if relocating to a new city.
• March: Flooded south London BTR scheme uninhabitable for up to a year
The Filigree, a BTR scheme operated by Get Living in Lewisham, south London, has been deemed uninhabitable for up to 12 months due to a major mains water pipe failure. More than 400 residents of the new-build development in Link Way will be unable to return to their homes for at least six months, and possibly up to a year.
The incident occurred on February 27, when a failure in the mains water supply at The Filigree’s energy centre, which powers three buildings in the housing complex, led to basement flooding. The flooding caused water and power outages for some homes and reportedly knocked out the electrical panel for the emergency generator. Assessments have since revealed substantial damage, and a full investigation, expected to take six to eight weeks, is now underway.
Residents were initially provided with emergency accommodation, reportedly in budget hotels, by Get Living. They were also given a £150 allowance to book alternative accommodations, such as Airbnb, if preferred. Those staying with friends and family were eligible for up to £50 a night, plus £30 per day for food.
However, on March 19, residents were informed that the repair work to rebuild the energy centre could take between six and 12 months, significantly extending the displacement period. Many residents have expressed frustration, citing poor communication from Get Living, as reported by local newspaper News Shopper. The £252 million BTR scheme in Lewisham comprises 649 new homes, including 424 for market rent and 106 affordable homes. It welcomed its first tenants in the summer of 2024.
In addition to residential units, the development was set to feature 88,000 square feet of retail, leisure, and food and beverage space, including a new cinema, for residents, visitors, and the local community. Get Living has stated that it is working with developer Muse and main contractor Balfour Beatty to resolve the issue as quickly as possible. However, it has clarified that it cannot provide support to individuals without an existing tenancy agreement.
• April: Major housebuilder launches partnerships division with focus on BTR delivery
Housebuilder Weston Group is launching Weston Partnerships, a new division focused on development partnerships and JVs with funds that manage BTR portfolios.
The new division has already entered into an agreement with Royal London Asset Management, part of Royal London, the UK’s largest mutually owned pensions company, to provide BTR homes across two developments, Bracknell Beeches, and Town Quay, Barking. These will deliver 411 properties with Weston Homes overseeing the construction.
In the local authority housing sector, it has entered into an agreement with Barking and Dagenham Council, via Be First, the Council’s regeneration arm, enabling the delivery of local authority affordable housing at Town Quay in Barking.
Weston Group CEO Peter Gore said that in addition to its existing affordable housing programme and market sale activities, the strategic expansion will also leverage Weston Group’s varied new-build, conversion and build-off-site expertise.
Steve Hatton, development director of Weston Partnerships, said: “I am delighted to lead Weston Partnerships, which is part of the group’s expansion into the Build-to-Rent, Local Authority Housing, retirement and student accommodation sectors, amongst other parts of the housing industry.
“Our priority is to work closely with our partners to help accelerate housing delivery, improve affordability, drive MMC innovation and uphold the highest construction standards. Through this expansion, we are well positioned to make a meaningful impact on the future delivery of housing.”
Gore said: “The BTR, local authority and some of the other deals we have already secured have the advantage of being forward funded providing an upfront income stream which is highly advantageous for our cash flow and financial strength.”
Bob Weston, chairman of Weston Group, added: “By harnessing our industry experience and British Offsite’s advanced construction technology, we can build more efficiently and at greater scale. This initiative reinforces our dedication to delivering sustainable communities while strengthening our partnerships across the housing sector.”
• May: Unite submits £400 million plans for 2,300 student beds in Manchester
Student accommodation provider Unite Students has submitted plans to develop 2,300 bed spaces across two new complexes for Manchester Metropolitan University (MMU) as part of a joint venture investment valued at nearly £400 million.
The proposed All Saints Campus development will replace the existing 770-bed Cambridge Halls building. The new complexes will be connected by a public thoroughfare and aim to address the university’s increasing demand for student housing. Alongside improved accommodation, the development will provide new community spaces along Cambridge Street.
Manchester is the UK’s second-largest university city, with over 100,000 full-time students enrolled at four universities. MMU alone requires around 5,700 beds annually to meet demand from first-year and international students, but currently owns fewer than half that number. This ongoing undersupply has led to higher rents and a reliance on privately rented family homes.
Through the joint venture, Unite Students and MMU aim to redevelop the Cambridge Halls site, providing modern, high-quality on-campus accommodation with features such as private bathrooms. The project will deliver 2,300 new studio and cluster bedrooms, catering to a range of price points.
Following extensive public consultation and stakeholder engagement over the past year, the final plans have been submitted to Manchester City Council. The updated design incorporates key changes, including the retention of pedestrian access through the site and enhanced public spaces for shared use.
The project team includes development consultancy Turley, architects Cartwright Pickard, design consultancy Re-Form Landscape, design and planning firm Arup, and engineering and environmental consultants Waterman Group.
Andrew Fallon, chief property officer at Manchester Metropolitan University, said: “As an ambitious university, we are committed to providing a modern campus in the city centre for our students, colleagues, and the community. This joint venture will deliver much-needed student accommodation and offer new health, wellbeing, and retail facilities for the local area.”
• June: Pegasus moves closer to rental-only later living model
Pegasus Homes has reached the next stage of its transition from a for-sale developer in the later living space, to a later living build-to-rent (BTR) developer and operator. The company, which is part of the Lifestory Group, announced in 2023 that it had secured a significant investment loan facility with Barclays, to support its growth as a dedicated BTR developer and operator.
CEO Steve Bangs said at the time: “I am very excited to be leading the business through the transition to become the market leading BTR developer and operator in the seniors market. As we prepare for this change, we will continue to offer both home purchase and renting as options across all 26 existing communities available to move into today, before moving to be exclusively Build to Rent.”
This week, COO Chris Powell wrote on LinkedIn: “Today’s gathering of designers and contractors marked the launch of a pivotal phase in Pegasus‘ business evolution. For decades, Pegasus has been dedicated to providing housing for older people, delivering over 1,200 later living apartments across England in the past ten years. About five years ago, we introduced rental options within our communities, and little did we know that we had placed a small snowball at the top of a mountain.”
“Despite the strong British tradition of homeownership, we’ve observed a clear shift in our customers’ preferences towards renting when downsizing. This shift is driven by various advantages such as reduced maintenance, financial flexibility, the ability to pass wealth to family, and adaptability during later life. While renting in retirement isn’t for everyone, it has consistently represented over half of our transactions for the last two years. Looking at broader trends, projections all agree that the older demographic in our population will grow substantially over the next decade. This necessitates a diverse range of housing solutions, with private rental playing a big role. Pegasus’s vision to develop high-quality, lifestyle-focused Build-to-Rent (BTR) accommodation for the 65+ active adult market is now being realised. We aim to lead in this sector and expand our offerings nationwide. We are looking forward to collaborating with our entire team to accelerate this progress,” he added.
• July: Fusion secures £500 million loan for five PBSA schemes
Student accommodation developer and operator Fusion Group has secured a £500 million whole-loan facility from development finance provider Maslow Capital to fund five purpose-built student accommodation (PBSA) projects. The developments across Birmingham, London, Loughborough, Glasgow and Cardiff will deliver a combined total of 3,138 student beds.
The loan, structured by Maslow Capital’s UK and Europe development finance team, is one of the largest single-lender debt packages ever arranged for UK PBSA. The five schemes have already been consented to and are scheduled for delivery between 2027 and 2028.
All assets will be operated under Fusion’s management platform, which is on track to oversee more than 11,200 beds by 2030. Each scheme will offer a range of premium amenities including study areas, gyms, yoga studios, padel courts, private dining rooms and landscaped outdoor spaces.
The announcement comes amid ongoing constraints on new PBSA supply, with fewer than 17,500 new beds forecast to complete during the 2024/25 academic year. Fusion’s expansion aligns with UCAS projections that applicant numbers could rise by up to 30 per cent by the end of the decade. Daniel Harris, chief investment officer at Fusion, said: “This landmark deal is a testament to the attractiveness of the UK’s living sectors and, in particular, the purpose-built student accommodation market in which Fusion has built a successful track record.”
Maslow Capital co-founder and CEO Ellis Sher said: “By providing £500 million of long-term capital, Maslow is helping Fusion turn plans into bricks and beds efficiently and at scale.”
• August: Local becomes Australia’s largest BTR platform
Local will become Australia’s largest Build-to-Rent (BTR) platform, having assumed the management rights of the country’s largest BTR property, Smith Collective on the Gold Coast.
Smith Collective, majority owned by Abu Dhabi Investment Council (ADIC), is located five kilometres from Surfers Paradise, and is Australia’s largest operational Build-to-Rent community.
Featuring 1,252 apartments and townhouses, it originated as the athletes’ village for the 2018 Gold Coast Commonwealth Games and has been designed to include extensive retail space, a public plaza, and parkland. Resident amenities include multiple pools, gyms, and communal spaces.
The addition of The Smith Collective asset brings Local‘s total portfolio value to over $2.46 billion and establishes its presence in Queensland’s growing BTR market.
Saoud Al Mulla, executive director of Real Assets at ADIC said: “We are delighted to entrust this major Build-to-Rent asset to Local. This transition underscores our confidence in their expertise and ability to deliver outstanding results. With the remarkable growth and transformation in the Gold Coast area, combined with a dynamic asset that has consistently generated strong rental growth, ADIC is eager to see how Local will unlock the full potential of Smith Collective over the
coming years, creating value for all stakeholders.”
Dan McLennan, co-founder and co-CEO of Local, added: “We are thrilled to take on the management of this iconic asset. The sustainable, campus-style layout of Smith Collective aligns seamlessly with our vision for best-practice BTR communities. Our involvement in the original creation and development of Smith Collective began our journey in the Australian BTR market over a decade ago. Accordingly, it’s incredibly exciting to be able to now steer this asset into the future as not only Australia’s largest Build-to-Rent asset, but also its best performing.”
The addition takes Local’s total portfolio to 3,246 apartments under either construction or management, encompassing five key projects in Melbourne; Local: Kensington, Local: Box Hill, Local: South Melbourne, and the newly acquired sites in Southbank and Docklands.
• September: Rove Hotels launches branded office concept
Dubai-based hospitality group Rove Hotels, in partnership with IRTH Group, has announced the launch of HQ by Rove, a new hospitality-branded office concept located in Business Bay and Marasi Bay Marina.
The project marks the brand’s second real estate venture, following the introduction of Rove Home residences in 2023. HQ by Rove combines office space with lifestyle amenities typically associated with hospitality. The development will offer fully furnished modular offices, ranging from 625 square feet studios to 5,790 square feet penthouse lofts. Units can be leased individually or as entire floors. The project spans 22,500 square feet of office space supported by 120,000 square feet of lifestyle amenities.
These include coworking areas, a food hall, an amphitheatre, wellness and fitness studios, sports courts, landscaped gardens, and floating treehouse-style meeting cabins. Located near Downtown Dubai and Dubai Design District, the site provides connectivity to Sheikh Zayed Road and Al Khail Road.
Paul Bridger, chief operating officer at Rove Hotels, said: At HQ by Rove, we’re blending the best of modern workspaces with the vibrant, fuss-free hospitality that Rove Hotels is known for. Think inspiring environments, community vibes, great coffee and seamless convenience. All designed to help you work, connect, and create without limits.”
• October: Government housing target set to be missed by 50 per cent
Analysis from planning consultancy Lanpro predicts that the government’s housing delivery target of 1.5 million homes over the course of the current parliament is likely to be missed by around 50 per cent.
Lanpro’s research, based on government figures, shows that despite a flurry of policy announcements, delivery is 10 per cent down on the ten-year average, and well below the 300,000 per year widely accepted as the minimum needed to reach Labour’s pledge. At current rates, only half of that figure is set to be met.
The latest estimates from the Ministry for Housing, Communities and Local Government (MHCLG) indicate that around 196,500 dwellings were added to England’s housing stock in 2024/25, an average of 16,375 homes a month. By contrast, the previous decade averaged 222,746 homes a year, or 18,562 per month.
If delivery continues at the current rate, Lanpro calculates that the country will be around 860,000 homes short by the end of 2029 – missing the headline 1.5 million target by about 46 per cent.
Lanpro’s new mapping shows a starkly uneven picture. The south-east and London, where housing need is most acute, are also the furthest from meeting targets – achieving just 47 per cent and 35 per cent of their estimated requirements in 2024–25. By contrast, parts of the East Midlands (79 per cent) and north-east (77 per cent) are closer to keeping pace.
At local authority level, the contrast is even sharper. Preston added homes at 232 per cent of assessed need in 2023/24, with Ribble Valley (186 per cent) and Salford (196 per cent) also exceeding targets. Yet many high-demand southern councils delivered less than 20 per cent of the homes they require – with Kensington and Chelsea at just five per cent and Bromley at eight per cent. Lanpro says this mismatch reveals that the regions and boroughs with the greatest affordability crisis are least likely to meet targets.
• November: Demand for flex workspace outpacing supply says WeWork boss
John Santora, CEO of WeWork, has warned the flex industry’s growth is outpacing its own capacity to respond to demand.
Delivering a keynote speech at the Global Workspace Association (GWA) Conference, Santora, said: “When you look at all the surveys that are done, you’re seeing 20 to 30 per cent where corporate real estate will be flexible working environments. Back a few years, you either owned your building or you had a long-term lease — now it’s own, lease, or flex.”
“When we do the calculations, it’s going to be between 500 million and a billion square feet. Where’s all that going to come from? We’re not taking down the space as an industry fast enough to meet the demand,” he added.
Discussing his priorities for WeWork, Santora said: “Bringing credibility to the brand, rebuilding our reputation, and restructuring leadership to remove silos. WeWork was never a technology company. It’s a real estate company at its core. Every deal needs to show profits,” he said. “At any time we’re going to take space, we had to prove that it was needed and that it would be profitable in a very short period of time.”
He explained that WeWork’s new model focuses less on expansion and more on enterprise partnerships and demand-driven deals: “If the client’s looking for 50,000 square feet or 100,000 square feet and they’re willing to commit for two or three years, then we’ll begin that from a sublease or directly from the landlord and match the term to the client’s term.”
• December: East London coliving project clears Gateway 2 in 13 weeks
A 150-unit coliving scheme in Hackney has been given Gateway 2 approval from the Building Safety Regulator in 13 weeks, thought to be a new record.
The scheme, on Kingsland Road, is by Morro, a sister brand of student developer and operator Scape. It is thought Kingsland Road is the fastest new-build scheme to achieve approval under the Building Safety Act regulations. Principal contractor HG Construction can now start building works on site.
The Building Safety Regulator’s official target for Gateway 2 approval is 12 weeks. The average time is 43 weeks but some projects have been held up for more than a year.
Morro, the sister brand of student living specialist Scape, said the news means its scheme on Kingsland Road, known as the Kline, is the fastest new build scheme to achieve gateway 2 approval under the Building Safety Act.
Morro is real estate company Meanwhile Group’s coliving brand. Founder Adam Brockley said: “Securing Gateway 2 approval for Kingsland Road in record time is a significant moment of confidence for investors and developers, particularly in the build-to-rent sector, that want to continue to deliver new housing in the UK. Strong collaboration and communication between all parties and quality processes have been instrumental to reaching this milestone, which demonstrates a clear benchmark for navigating Gateway 2.”
Project manager on the scheme is Pareto Projects. Its managing director Kuli Bajwa said: “When the new gateway regime was introduced, the industry faced significant delays but it’s clear the BSR has now adopted a more responsive and collaborative approach and we feel we are finally being heard. This milestone shows what’s possible when everyone works with clarity, discipline and a shared commitment to safety and quality.”
