12-month co-living lease extensions double

New tenant data from co-living operator Built Asset Management reveals extensive rise in co-living lease extensions in post-pandemic period.

BAM bedroom at co-living scheme - Built Asset Management | BTR News

New data from Built Asset Management (BAM) – a London-based co-living operator – reveals an extensive rise in contract extensions amongst tenants within the past six months.

According to the latest tenant data, the first six months of 2022 saw a 31% rise in tenants extending their tenancy beyond their initial 12-month contract, when compared to the same period in 2021 (January to June). Also, tenants choosing to extend their initial contracts for an additional full 12-month period doubled. The operator also experienced a 102% rise in 12-month contract extensions in the period January to June 2022, when compared to the same period in 2021.

“What we’re seeing are the results of a return to stability in the capital in the wake of the pandemic. Throughout the pandemic, many young professionals in London were in a state of limbo, unsure of offices reopening and even the security of their jobs. As a result, many were understandably less keen to commit to long-term rental contracts, which certainly had its impact on the co-living market.

“With normality now resumed, we’re seeing the positive impact of a return in confidence, thanks to increased stability and a reduction in fears around restrictions impacting everything from livelihoods to city socialising. This is brilliant news for the industry, but it’s also brilliant news for the community that we serve. Data shows that the youngest section of the UK workforce were some of the most likely to lose their job during the pandemic, so the resurgence in confidence is fantastic to see. This is particularly true as the cost of living crisis sets in and creates a new set of challenges for this demographic to contend with.”

Alex Gibbs, Co-Founder and Director, Built Asset Management

Alongside increases in tenant retention, the co-living sector has seen a large increase in demand in the past six months. According to BAM’s enquiry data, the average number of enquiries per available room unit (i.e. prospective tenants expressing interest in a room) has increased by 150% in the period January –to June 2022, compared to the six months prior (July to December 2021).