One of London’s largest co-living property operators claims there’s been a marked increase in demand from young renters.
Built Asset Management says it's seen a 192 per cent increase in signed rental contracts with those under the age of 24, compared to pre-lockdown months of January and February.
Co-living is the informal rental accommodation often within big buildings, with tenants having small or sometimes shared bedrooms, with more substantial communal facilities.
BAM says much of the surge is down to young professionals taking out leases on co-living accommodation; of the under-24s taking out new co-living contracts last month, 62 per cent were first-time renters in the capital.
Additionally, 53 per cent of under-24s opted for properties within the west London W postcodes in the past month.
“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” claims BAM director Alex Gibb.
“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” he continues.
“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.”
He adds that landlords and investors in the co-living sector can also take comfort from separate research showing little difference in the proportion of professionals aged 25 to 44 planning to remain living in London, compared with pre-pandemic.