London, Manchester and Edinburgh top the list of UK cities with the biggest growth potential for co-living accommodation, according to analysis from Cushman & Wakefield (C&W) highlighting the structural changes underpinning investment in the emerging residential subsector.
The number of UK households in private rented accommodation has grown from 3.9m in 2011 to 5m today, and is forecast to increase further, due to a growing population and affordability constraints in the owner occupier market. With the supply of rental properties not keeping pace, average rents have risen by 10% in the last 12 months and 35% over the last five years.
C&W analysed key demand metrics across the 18 UK cities with the current highest number of private renters aged between 18 and 35, including: the proportion earning over £40,000; PRS annual rental growth; student-to-bed ratio; post-graduate student numbers; and forecasts for population growth of young adults between now and 2040.
London topped the rankings, however the metrics varied greatly by borough, with Kensington & Chelsea (60%), Westminster (57%) and Tower Hamlets (55%) having the highest number of renters aged 18 to 35 earning over £40k, and Hammersmith and Fulham (12%), Wandsworth (11%) and Tower Hamlets (11%) having the strongest population forecast for young adults between now and 2040.