Investec reports UK coliving sector set to grow in 2026

UK: Investec Bank’s Future Living 4 report found 40 per cent of UK investors plan to increase capital allocation in the coliving sector over the next five years.

Out of the living sector, coliving came third in percentage of investors interested in increasing capital, behind later living and purpose-built student accommodation. Only 12 per cent planned on decreasing capital, the second-lowest figure.

On the Renters’ Rights Act, 36 per cent of investors were optimistic about coliving, 16 points higher than those who were pessimistic. The majority, though, found the legislation’s impacts to have a neutral effect.

These figures come amid structural undersupply, strong demand and resilient income. 9,000 coliving units are live nationwide, with more on the way.

“Coliving has evolved materially in recent years and is now establishing itself as a credible, institutionally backed segment of the UK Living market,” Investec corporate real estate chief Jonathan Long said.

He continued: “The sector benefits from long-term structural drivers including housing undersupply, affordability pressures and sustained demand from renters seeking professionally managed, well-located accommodation with flexibility and a strong amenity offer.”

Highlights:

• Investec found 40 per cent of UK investors plan to increase capital allocation to coliving over the next five years.
• Coliving ranked third in investor interest, behind later living and PBSA, with only 12 per cent planning to decrease capital.
• 36 per cent of investors were optimistic about the Renters’ Rights Bill’s impact on coliving, 16 points higher than pessimists.
• Approximately 9,000 coliving units are currently live nationwide, with more in the pipeline.
• Investec’s Jonathan Long cited housing undersupply, affordability pressures and demand for professionally managed accommodation as structural drivers.