How can Co-living help resolve the housing crisis? Insights with urbanbubble

In part two of our three-article series, CBRE’s Kirsten Dyer spoke with Michael Howard, Founder & CEO of urbanbubble, the property manager behind Folk Co-living, to discuss the realities of leasing up and operating Co-living schemes in the UK, what is making residents stay, and how Co-living could help the UK’s housing crisis.

What’s the reality of leasing up a Co-living scheme? Who are your typical residents?

Co-living is still an emerging concept in the UK, so educating prospective residents about its benefits is key. The Co-living model offers properties which are well-located, with private studio apartments on flexible contracts inclusive of bills, and with regular community events. urbanbubble has seen strong demand for this product with rapid stabilisation of new schemes. Residents are typically between 25-40 years old but ages range from 18-68 combined with a diverse mix of professions and nationalities, dismantling the perception that Co-living is just for graduates and young professionals. Less than 12% are students or recent graduates.

“Demand for Folk schemes has been incredible, with Sunday Mills and Florence Dock becoming stabilised in just over 3 months.” 

What factors contribute to tenant retention in your Co-living schemes?

Retention rates are strong at Folk Co-living schemes, highlighting the quality and community appeal once residents take occupation. Residents appreciate the high-quality, professionally managed homes in central locations that represent better value for money than Build-to-rent (BTR) equivalents and offer more privacy and specification than a House of Multiple Occupation (HMO). The community aspect is a significant draw, offering a more compact yet fulfilling living experience. Essential amenities like co-working spaces, communal kitchens, and laundry rooms are the most utilised.

“An engaging events program is essential to ensure shared spaces remain vibrant and attractive. When done right, the quality and range of facilities positively impacts resident satisfaction and retention rates.” 

Building on the first part of this article series, how do urbanbubble think Co-living can address the UK’s broader housing needs?

With 56% of UK renter households renting alone or in homeshares, Co-living offers a more affordable, flexible alternative that prioritises location, amenities, and community. The UK faces a significant housing shortfall, and Co-living can help bridge this gap, particularly in urban areas where demand is highest. We envision a future where Co-living becomes a common type of rental housing, addressing undersupply and evolving urban living needs. Co-living offers a more affordable and flexible alternative for people willing to trade apartment size for better amenities and central locations. Given the chronic undersupply of housing in the UK, Co-living can significantly alleviate this pressure. We think the provision of Co-living in major cities would substantially impact the rental sector and meet the evolving needs of urban renters.

What are the key ingredients of a successful Co-Living scheme?

Success is determined by the same factors we see in the Private Rented Sector and BTR, for example how centrally located and well-connected the property is; the quality of design and construction; the level and consistency of service; the perceived value for money, and more. Many of the significant factors are determined before the scheme launches, such as location and design, and it’s then for the operator to deliver an exceptional level of service to strengthen the brand and maintain occupancy.

What’s the future of Co-living in regions outside London?

We believe Co-living will thrive wherever there's significant rental demand. Regional cities are poised to follow London's lead, provided planners embrace the concept and key institutional investors build these assets into capital deployment strategies, alongside BTR, PBSA and other living asset classifications.

“In summary, our commitment to Co-living is reshaping urban living, offering a practical, community-oriented solution to the housing crisis.”