What amenities does co-living usually provide?

Co-living is a contemporary housing model offered to individuals who want to share in a community-oriented lifestyle and who share similar values. Co-living encourages collaboration of minds and lifestyles in a community environment while affording residents private living spaces alongside shared common areas like kitchens, planetrent.co.uk/blog/coworking-and-offices-in-camden-town'>co-working spaces, swimming pools, cafes, and residents' lounges. Co-living provides more flexible lease terms; many schemes offer both short and long stays with rents being based on a rate card that reflects the length of stay. Short stays can be on a serviced apartment basis with bed change and toiletries; Long stay is also supported by being able to book housekeeping staff on a pay-as-you-go basis.

The size of the scheme usually governs the breadth and range of amenities, which are all tailored to diverse resident needs. Co-living appeals to a wider demographic, including professionals, self-employed, home workers who sacrifice living space inside the apartment to go to work in communal spaces, and of course, young entrepreneurs looking to foster and share ideas at pitch deck evenings and the like. Networking opportunities and interdisciplinary collaboration are key benefits sold in the planetrent.co.uk/blog/space-optimised-amenities-included'>coliving culture.

The UK housing market can learn valuable lessons from the US planetrent.co.uk/blog/space-optimised-amenities-included'>coliving model. Co-living in the US helps address the pressing issue of housing affordability as it offers high-quality, serviced living spaces in prime locations. The demand for co-living spaces in the US comes from various demographics, including fresh graduates, young renters comfortable with shared facilities, professionals relocating for work, and individuals ready for more flexible lifestyles.

Whilst in the UK the co-living sector is in its infancy it remains an innovative housing solution that offers a promising investment opportunity in the UK, especially in urban centres. Co-living is viewed as a key way to bridge the affordability gap in the housing market. It is particularly suited to single persons and those who have not yet found flatmates for house shares. Whilst mostly city-centric purpose-built co-living developments for rent are emerging across the UK.

UK co-living standards: Greater London Authority (GLA) initiatives

The Greater London Authority (GLA) has taken proactive steps in facilitating large-scale co-living projects and is in the process of establishing specific standards for such developments.

Co-living: council tax or business rates what is the norm.

UK co-living offerings include comprehensive amenities and are usually let on an all-inclusive package, which includes council tax and bills. Interestingly, this is often because planetrent.co.uk/blog/space-optimised-amenities-included'>coliving developments start in planning terms under a hotel use class so are rated for hotel business rates, not council tax making the all-inclusive model a natural fit. For a development to be rated for council tax, it would have started its life as a C3 planning use class - the reason many co-living operators opt for hotel use is to avoid the minimum space requirements that residential brings.

While the UK co-living market lags behind its US counterpart, it is expected to expand significantly, driven by shifting homeownership trends and increasing demand for innovative living options.

Co-living: what can the UK learn from the US model?

Co-living in the US and UK are similar when you compare features, co-living both sides of the pond sell themselves as affordable, serviced living spaces in central locations. However, there are some differences between the two models. In the UK, co-living tends to offer short-term rents. The focus is more on spending time sharing communal spaces. It is a good way to access smaller private accommodation units and cheaper rents.

On the other hand, the concept of co-living has a longer history in the US. In the US, co-living arrangements typically involve longer lease durations and multiple amenities and services tailored to meet residents' varied requirements. The American co-living market caters to a wider demographic, including young professionals, entrepreneurs, digital nomads traveling for work from city to city, and students. The co-living model in the US has gained momentum as a viable investment proposition, particularly in urban areas, and is seen as a way to fill the affordability gap in the residential market.

How far can the co-living model expand beyond urban cores? 

Demand for co-living and purpose-built rental properties in the UK is expected to increase in the coming years. These signs emerge from specific trends, such as individuals delaying home purchases and being willing to invest more in desirable living environments. Many come from the purpose-built student accommodation sector (PBSA) and expect to treat their accommodation as a service that they consume. Many towns also have an HMO or house in multiple occupation sectors where renters are used to small spaces and may wish to trade up and pay extra for better standards, brand-new facilities amenities, and security.

Does co-living work beyond City Centres?

This suggests a potential for extending the co-living concept beyond city centers, particularly given the importance of housing affordability and access to well-appointed, serviced residences for many. There are key workers, blue-collar workers, students, and young single people in most commuter towns. The challenge is that if amenities are going to be provided, then the co-living needs scale - usually 350 homes plus and many developers will worry about a sufficient demand for city centres and university towns for this number of units. That said, premier inn-style self-service smaller co-living schemes are emerging. These aim to have a low staff complement and unmanned front desk tech-enabled solution to achieve viability. At the other end of the scale, co-living combined in a larger scheme say circa 500 units, could complement mainstream multi-family build to rent as well as possibly later living too.

However, the precise scope of how the co-living sector will expand hinges on various factors such as local housing needs, transportation infrastructure, and the preferences of the target demographic. In addition, the evolving trend of delayed home purchases and a growing preference for adaptable, community-oriented living arrangements influence the potential for co-living developments outside urban hubs.

To see how we can help whether you are an investor or a potential renter than go to www.ringley.co.uk or to our specialist website at www.unaliving.co.uk. We look forward to hearing from you.