Data from the real estate company reveals 9,000 co-living units were submitted for planning in the UK in 2024, compared with around 4,800 in 2023, and 6,200 were granted planning permission.Approximately 5,500 more, already consented units are also currently under construction to add to the UKs 9,000 existing operational units. According to Savills, delivery is expected to accelerate further throughout 2025 as inflation stabilises and investor confidence grows.The research was revealed in a c0-living spotlight report, which evaluated the co-living market compared with traditional private rented sector (PRS) stock across six major cities in the UK.AdvertisementSavills found cities will strong graduate retention rates London, Manchester and Birmingham among them are key markets for co-living developments.The report explained: Many graduates who are familiar with high-quality purpose-built student accommodation (PBSA) from during their studies, seek similar options as they begin their careers.In London, which has a 59 per cent graduate retention rate, 23 out of the citys 32 boroughs have now adopted or are in the process of developing policies on co-living.HTA Designs College Road development, a 50-storey tower of 817 co-living apartments dubbed Enclave: Croydon and a 35-storey tower of 120 affordable homesAnd Savills said the latest generation of UK co-living schemes had seen strong lease-up rates and high occupancy levels, particularly appealing to the 20-4o age group.Paul Wellman, associate director of residential research at Savills, described co-living as a vital addition to the UKs rental landscape.AdvertisementWellman added: With rising rental costs and a shrinking PRS, co-living offers a practical, high-quality housing option that delivers value for money while addressing the evolving needs of city renters.A sample of 11 operational schemes in London analysed by Savills, comprising a total of 2,700 units, showed all-inclusive co-living rents ranging from 1,550 to 1,750 per month.Lizzie Beagley, head of PBSA and co-living transactions for Savills Operational Capital Markets, said co-living was emerging as a distinct sub-sector within the wider Build to Rent market, and had attracted investors such as Cain International, Blackrock, Real Star, Crosstree, DTZIM, APG and CDL.Beagley added: The transactional evidence is still sparse, due to our still being in the development cycle of the market. However, we are seeing success from established operational portfolios such as DTZIM (Folk), Dandi, Vita (Union) and Scape (Morro) in some excellent second-generation co-living schemes.The UK co-living pipeline currently sits in contrast with the UK housing pipeline, with housing projects still lagging compared with last year, according to Allan Wilen, economic director at construction analyst Glenigan.Recent data released by the company found there were 12 per cent fewer housing starts in the three months to the end of January, compared with the same period in 2024, according to data gathered by construction analyst Glenigan.However, project starts crept up by 19 per cent between November 2024 and January this year, indicating quarter-on-quarter recovery, according to Glenigan.Private housing construction could grow by 13 per cent in 2025, and social housing could increase by 11 per cent, according to the companys forecast, provided the gains are sustained by a strong pipeline of new projects alongside further policy interventions in planning from the government to help unlock development.2025-02-19Anna Highfieldcomment and share