Co-living demand rises in London, BAM finds

Co-living operator Built Asset Management (BAM) finds that the demand and popularity for available co-living units across London is at its highest point ever throughout Q1 2023.

Built Asset Management (BAM) are experiencing high demand for their co-living units | BTR News

The demand for co-living spaces in Q1 2023 is at an all-time high. Received by BAM 12 months prior, the average number of prospective tenant enquiries per unit sat at 5.3.

In 2021 amidst mid-pandemic levels, average enquiries sat at 2.1 per room available.

Making up 39% of total lettings enquiries received, the highest demand for co-living lets was seen amongst the 30 to 35 age bracket.

The year before experienced a slightly younger tenant demographic, most prominently seeking co-living accommodation in the capital, with people aged 25 to 30 making up 42% of enquiries received by BAM.

According to the newly released data, the average co-living unit remains available to let for just two working days, from when BAM advertise a property’s availability to the point at which a tenant pays a holding deposit, taking the space off the market.

“Q1 2023 witnessed an incredibly hot co-living market. Our data shows us that the ever-increasing popularity of the model amongst young professionals was supercharged by a desire for known, fixed overheads in a world of rapidly increasing energy costs. The effects were magnified by supply and demand imbalances in the wider rental market, as landlords sold 35,000 more properties than they bought across 2022. After the scares around a new covid variant in early 2022, Q1 2023 represents the first start to a year in a co-living market fully unaffected by the pandemic since 2019. Traditionally a very buoyant part of the year pre-pandemic, it has been very positive to see the market return to this form. Whilst demand is notably up across the board, when compared to the same period for the preceding three years, demand in the 30+ age category has seen the largest surge. This was a change that we expected to see, to a degree, due to the cost-of-living crisis taking hold and motivating Londoners further along the age and income continuums to opt for a more financially stable and cost-effective living arrangement.”

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

BAM’s portfolio consists of 1,300+ rooms across London’s most popular residential boroughs.

Last year, BAM acquired house-share specialist Kingdom Houses, taking on operations across their entire 300+ portfolio.