So, the year is almost out and we’re sitting here in the Movebubble offices doing what we now do automatically at this time of the year.
We’re currently asking, as we’re sure you must be too, what is next for the rental property market in 2020, and what trends should we really be on the look-out for? Keep reading to find out our views on what the year 2020 may hold...
The Private Rental Sector now accounts for over 4.5 million households in the UK, rising a huge 63% since 2007, easily becoming one of the fastest growing markets in housing.
As property prices continue to increase and with a new generation of people who prefer a more flexible approach to living, there is really no surprise that younger households are more likely to rent privately, with 25-34 year olds representing the largest age group living in privately rented accommodation currently.
However, between 2007-2017, the largest percentage increase of those in privately rented homes actually fell to the age group of 45-54 year olds, showing that as the years go on, the Private Rental Sector is still rapidly increasing and becoming more appealing to a wider demographic of people.
With the market set to continue with this upward climb, one trend within the Private Rental Sector that is really beginning to gain traction is that of co-living. With the way that it’s going, we think that 2020 could be a really big year for this growing trend - so let’s find out more about it.
What is Co-Living?
Co-living, in basic terms, is a modern housing option that gives residents the opportunity to share their living space but to also share their similar interests, intentions and values with like-minded people.
One of our Build-to-Rent partners at Movebubble, co-living company The Collective (who have developments in Canary Wharf, Old Oak and in Long Island City, USA) describe it as,
“...a way of living in cities that's focused on community and convenience. Live as part of a community, sharing wonderfully designed shared spaces and inspiring events... Everything you need to make the most of city life is included in bill... So you can do the living, and leave the rest to us.”
The rise of Co-Living
Last year in 2018, the Greater London Authority officially acknowledged the tenure type in the London Plan, providing advice to councils. Since then, multiple co-living developments have cropped up across the UK and Ireland, particularly in London, Manchester and Dublin.
A recent poll revealed that 76% of industry professionals believed that there would be a rise in co-living developments in 2019, with this growth set to continue to the point of the asset class being anticipated to be worth £275 billion by 2025. This shows that the property sector in the UK is definitely recognising the worth and importance of co-living, and it also demonstrates that the year 2020 will only see its further advancement.
The future of Co-Living
Co-living is perfect for a generation of people who are becoming increasingly more nomadic, while also presenting them with a ready-made social life wherever they go; helping to combat loneliness and providing valuable networking and skill-sharing opportunities.
However, although the younger generation are currently the main target for many of the UK co-living developers, it’s not just the millennial generation that can gain from the co-living way of life.
There are currently co-living developments in progress or already operating across the UK, catering to different crowds. These include:
- ‘A House for Artists’ in Barking - “addressing the growing problem of affordable housing for artists in the capital”, in the words of the project ambassador
- Marmalade Lane on the outskirts of Cambridge - a new co-housing development consisting of 42 terraced houses and a mid-rise apartment block, all arranged around the Common House which includes a shared laundry room, guest bedrooms and a hall used for yoga, communal meals and informal socialising
- Belle Vue in Hampstead - a retirement community comprised of 59 homes and many communal facilities, including gardens, a library, a restaurant and a well-being centre
Here’s to 2020
We can see that growth already happening, and very quickly at that, with 2020 already establishing itself as a big year for the co-living sector.
The adaptability and additionality that co-living developments can deliver will make it an attractive choice for renters, local authorities and investors; both now and in the future. It looks like co-living is here to stay and set to boom in 2020.
If you are a co-living developer and would like to know more about partnering with Movebubble and getting your properties seen by the right people through our app, contact us today.