Coliving could serve 3.7 million renters in the UK, report finds

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UK: The coliving sector has a potential customer base of 3.7 million renters, according to a new report from Conscious Coliving called “Building Homes, Supporting Urban Regeneration and Fostering Communities through Co-Living”.

The study suggests that coliving could play a significant role in meeting the UK’s urgent housing needs while also fostering community and supporting urban regeneration.

Published as part of the advocacy campaign #WhyCo campaign, a group led by Conscious Coliving co-founders Penny Clark and Matt Lesniak that aims to drive collaboration between policymakers and industry leaders, the report analyses the role of coliving and its potential to meet housing demands.

It features interviews with more than 40 developers, operators, investors and coliving residents. It also draws on data collected by CBRE and Experian and sector case studies.

With the UK’s housing crisis deepening, supply is failing to keep pace with demand in the private rented sector (PRS).

PRS now accounts for 18.5 per cent of households (5.3 million), projected to rise to 21.2 per cent (6.2 million) by 2028. Meanwhile, rental listings have fallen by 15 per cent between 2019–2024 and 31 per cent of landlords plan to sell within two years, driven by tax changes and the costs of upgrading properties.

Therefore, the report suggests that an estimated 550,000 additional homes are needed over the next five years, on top of a 4.3 million home backlog.

Coliving is not only a potential solution to the housing shortage, it could also address the erosion of traditional community spaces and consequent loneliness crisis that the UK is experiencing, says the new report.

With more than 2,000 pubs closing since 2020 and more than 34 closing each month in 2024 alone, the decline of third spaces has left renters, particularly those between 16 and 24, with fewer places to connect, the report finds.

The study concludes that coliving offers a a flexible, community-driven response to these challenges by providing professionally managed, studio-led homes with shared amenities, flexible, all-inclusive rents, often with shorter leases, built-in community and wellbeing programming and a viable option for single renters, young professionals, single parents, recent divorcees, and adults living alone.

London is leading this trend, accounting for 55 per cent of operational and pipeline coliving beds, with demand also expanding in cities like Manchester, Birmingham, Bristol, Exeter, and Sheffield, where renters are seeking high-quality, affordable options that align with flexible and connected lifestyles.

In a Linkedin post, Conscious Coliving said: “We believe that stronger collaboration between local authorities, developers, investors, and operators is needed to ensure delivery meets both market demand and social value outcomes. This report aims to be a resource that helps industry players and policymakers to do just that.”

Download the full report here.

Highlights:
• Conscious Living has reported that the UK coliving sector has a potential customer base of 3.7 million renters
• The new report has suggested that coliving could help meet urgent UK housing needs while supporting community and urban regeneration
• The study has drawn on interviews with over 40 developers, operators, investors, and residents in the coliving sector
• It has highlighted the UK’s need for 550,000 additional homes over the next five years on top of a 4.3 million home backlog
• The report has found that coliving could address the decline of community spaces and rising loneliness among young renters

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