In an evolving residential real estate landscape, the co-living sector is rapidly gaining momentum and attracting developer and investor interest as a viable option with tremendous potential for the future of UK housing. Investment volumes have reached just over £1 billion (€1.16 billion) during the past five years, with 45 percent of institutional investors intending to invest in this growing asset class by 2028, compared with 32 percent in 2024, according to Knight Frank.

Co-living offers a compelling investment proposition with its large and diverse demand pool, appealing yields, strong lease-up rates, and consistently high occupancy. It also closely aligns with long-term demographic and other socioeconomic trends.

The private rented sector (PRS), which represents 18.5 percent of UK households and is anticipated to rise to more than 21 percent by 2028 according to Experian data, has seen a significant supply/demand imbalance, with the growth of the co-living sect