Flexible Living on the Rise? Co-Living Gains Momentum, but PBSA Remains the Student Market Mainstay
The UK co-living sector is expanding rapidly as younger renters increasingly prioritise convenience, social connection, and flexible contracts. A 2025 survey by Bidwells of over 2,000 residents across London and the “big six” cities found strong demand for city centre locations, walkable neighbourhoods, and proximity to shops, restaurants, and friends. The preferred format is studio-style units combining private en suite accommodation with shared communal spaces, highlighting a desire for independence alongside community. Practical essentials—reliable Wi-Fi, secure access, and laundry facilities—outrank amenities such as gyms, co-working spaces, or rooftops for 88% of respondents.
Investment and planning activity reflect this momentum. Since 2020, around £1 billion has flowed into co-living, while planning applications surged, with Savills reporting roughly 9,000 units submitted in 2024—an 87% increase on the previous year. Regional hubs such as Manchester, Birmingham, Leeds, Bristol, and Liverpool are increasingly attracting developments alongside London, appealing to career-mobile, international, and younger renters seeking short-term, inclusive, and community-oriented living options.
At Property Week’s Battle for the Beds panel, industry experts debated whether co-living and Build-to-Rent (BTR) models pose a threat to traditional purpose-built student accommodation (PBSA). Panelists, including developers, operators, and university representatives, highlighted that while co-living offers flexibility and social engagement attractive to younger renters, PBSA remains uniquely suited to student needs with stability, academic alignment, and dedicated support services.
Key takeaways from the panel included: • Complementary vs. competing sectors: Co-living and BTR target mobile professionals and international renters, while PBSA continues to meet student-specific lifestyle and academic demands.
• Flexibility and amenities: Features popular in co-living, such as short-term tenures, inclusive bills, and community programming, are increasingly being mirrored in modern PBSA schemes. • Regional expansion: Both co-living and PBSA are seeing growth beyond London, driven by affordability pressures, student mobility, and employment opportunities.
• Regulatory impact: Planning, safety, and tenancy legislation influence co-living and BTR development, while PBSA benefits from established sector frameworks.
Despite the rise of co-living, the panel concluded that PBSA continues to demonstrate resilience in student demand. At the end of the session, the audience voted on which sector they believed would prove most durable over the next decade, and PBSA still came out on top.
