Skip to main content
Close
London City skyline from above at sunset

Future Living 4, Volume 2: Co-living - from alternative to core allocation

How investor sentiment, yield expectations and delivery constraints are shaping the UK co-living sector.


Co-living has moved beyond a niche proposition and is now firmly established as a valued component in the UK’s urban housing mix, particularly in supply-constrained city centres. Based on our survey of global institutional investors, this report explores what’s driving growing investor conviction and why execution, planning routes and operating capability now matter as much as demand.

Be the first to receive the next Future Living volume, real estate updates and reports from Investec. Sign up here.
 

 

Download the full report PDF 17.73 MB

Key survey results

40%

expect to increase capital allocations to co-living over the next 12 months.

56%

plan to enhance co-living schemes with additional amenities.

22%

plan to increase co-living unit size dimensions.
Key themes:
Co-living now key part in urban Living

What’s driving stronger investor sentiment and how fast is the market scaling?

Yields, valuation and return conviction

How density, demand and amenities are driving co-living income intensity.

Planning, regulation and delivery

Why the route to scale is execution-led and how the Renters’ Rights Act is raising the operational bar.


  

Looking up at glass fronted tower buildings in London
Jill Ju, CEO and Founder of True North

The main question is no longer 'does co-living work?' but rather 'can you execute it well?'

Download the report

Download the Future Living 4, Volume 2 report for full insight and analysis.

Sign up

Be the first to receive the next Future Living volumes, and other real estate updates and reports from Investec.

 
Research methodology

Research was conducted by FTI Consulting online from 7 to 14 October 2025,with n=50 global institutional investors invested in UK real estate representing approximately £302 billion in global assets under management. The convention on rounding was followed, so sums may not always add up to 100%. For more information on the research methodology, please contact andrew.davis@fticonsulting.com.

Contact us

Jonathan Long

Jonathan Long

Head of Corporate Real Estate

Jonathan is currently Head of Corporate Real Estate lending responsible for over £1bn of loan assets, and specialises in providing debt finance for PBSA, residential and industrial projects.

Other articles you may be interested in