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New Data Shows 312% Increase in Renters Ditching Single Accommodation in Favour of Co-Living

Our latest data has revealed a marked increase in the popularity of co-living amongst those previously living alone, with single-renters ditching lone-living in favour of a houseshare property here in the Capital.

According to the data, there has been a 312% increase in renters coming from single-let properties throughout July and August, ie. those inhabited independently, signing rental contracts for a room within a co-living property operated by BAM, when compared to the months of January and February. These months were given as a comparative as they were pre-lockdown measures imposed on the rental market, therefore giving an accurate snapshot of the pre-Covid 19 co-living market.

We ask all prospective tenants seeking co-living accommodation anecdotally for their reasons for leaving their current housing situation. According to those leaving single-let accommodation between July-August, the top three reasons given were as follows:

  • Seeking more financially viable accommodation option – 32%
  • Seeking co-living property to avoid feeling of isolation – 25%
  • Seeking flexibility with a view to potentially purchasing afterwards – 20%

Our data also revealed the average age of tenants ditching single-let accommodation in favour of co-living to be 36.1 years old; 8 years older than our average tenant age of 28.2 years old.

Co-Founder and Director Alex Gibbs explained the data:

“Typically, the bulk of our incoming occupants are young professionals either moving from existing houseshare accommodation in the city or entering London’s rental market for the first time.  Post-lockdown, however, we have seen a real  “Covid-effect” coming into play with a huge increase in renters vacating single-let accommodation in favour of co-living, a trend which shows no signs of slowing down throughout September.

“Undoubtedly, changes in personal and work circumstance as a direct result of Covid-19 have led to many renters seeking a more financially-viable route in the form of shared accommodation; ultimately a more affordable option than single-lets. What’s perhaps more interesting, though, is that a relatively high proportion of our new tenants have directly cited trepidation about the feeling of isolation as their main reason for exiting the single-let market. The negative impact of lockdown on mental health appears to have had a direct effect on rental behaviour. It is also interesting to note that one in five new tenants have cited increased flexibility as a key reason for selecting this type of accommodation, with a medium-term plan to purchase a property rather than to continue renting.

We will want more data in order to make stronger inferences here, however, initial signs suggest that the lockdown and the wider pandemic have caused Londoners to re-evaluate their priorities and potentially their attitudes towards renting in the long term”

If you’re interested in a co-living property in London, our team would be happy to help. Get in touch here.

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Under 24s Flock to Capital Contrary to Market Forecasts

co-living london

Despite market fears of somewhat of a mass exodus of young renters from the Capital in light of ongoing Covid-19 related economic factors, our latest rental data from the past month suggests very much the opposite; a 192% increase in signed rental contracts with those under the age of 24 in September 2020, when compared to the pre-lockdown months of January and February this year.

Of the under-24s taking out new co-living contracts with us in September, 62% were first-time renters in the capital. Additionally, 53% of under-24s opted for properties within W postcodes in the past month; at odds with the rest of the market, where SW postcodes remain our most popular.

Our Co-Founder and Director, Alex Gibbs, shared his thoughts on the influx:

“This is a really interesting trend, particularly when viewed in the context of the broader market data which actually shows a (probably temporary) net migration of young professionals out of London for the same time period.

Recent data has shown that, statistically, under-24s are at the greatest risk of losing their incomes as a result of the pandemic, and that this age group is bearing the brunt of the mental health toll as a result of the country’s COVID response. Given that this demographic also reportedly experiences lower levels of fear around the concept of actually contracting COVID-19, it is perhaps unsurprising that these individuals are more keen and more willing to relocate into the Capital for work purposes when compared with professionals in other age brackets.

Our findings here also marry neatly with data revealed by employers that remote working often presents the biggest challenge where new and emerging talent is concerned. More junior team members often require more face to face time as a necessity, in order to get to grips with things and to learn via osmosis.

Landlords and investors within the co-living space can also take solace in the fact that research conducted this month showed that, long term, there is virtually no difference in the proportion of professionals aged 25-44 planning to remain living in London, as compared with pre-pandemic. It seems that perhaps their younger counterparts are just acting a little more quickly.”

If you're interested in finding a co-living property in London, we'd be more than happy to help. Head over to our Contact Page to get in touch.

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BAM Data Shows Average Age of Co-Living Renter in London Up By 5 Years

BAM Co-Living London

As one of London’s leading co-living operators, we like to take a regular look at our data to see what trends we’re seeing when it comes to the London houseshare market. According to our latest data, we can reveal that the average age of renters living in shared properties in the capital has risen by 5 years since 2017; with couples choosing to split the cost of a rental by sharing with others also increasing by 36% since 2017.

According to our tenant data, the average age of a tenant within our co-living properties was 23.9 years old in 2017; rising to 28.2 years old in February 2020. Furthermore, our data revealed that renters are remaining in co-living property for much longer than before, rising by over 50% in the past 3 years. The average renter now remains in shared living for an average of 18.3 months, compared to 12.1 months in 2017.

Not only has age and duration increased, but more couples in the capital than ever before are seeing co-living with other renters as a viable housing option; with coupled-up renters sharing one room within a shared property increasing by 36% since 2017.

Whilst the FMCG and Tech industries remain the most prominent amongst our tenants, accounting for 19% of all tenants within our properties, renters working for FTSE100 companies has risen by 300% in the past 3 years; suggesting co-living to be an increasingly attractive proposition to those within large, white collar institutions.

“The data really reflects the ever-increasing popularity of co-living as an attractive housing option for renters across the capital, with this form of accommodation attracting an increasingly senior and discerning demographic of professionals,” explains Alex Gibbs, our Co-Founder.

“When we launched B.A.M in 2013, co-living was a relatively new concept mainly pursued by those in their early twenties at the start of their careers, with most renters in the capital seeing it as a ‘stop-gap’ option or a ‘gateway’ into the London rental market. As our data now shows, co-living is fast catching up with the single let market as an option for older professionals in increasingly upmarket professions; no doubt a reaction to the huge rise in quality and variety of co-living properties now on offer. Ultimately, co-living offers a flexible, affordable and attractive accommodation option within high-end properties with fuss-free benefits; bills and cleaning are included, and you needn’t worry about furniture, appliances, or even cutlery.”

Interested in finding a co-living property, or are you a landlord looking to work with us? Get in touch via our contact page.