The UK government is committed to supporting economic growth, with the life sciences sector identified as one of the key ‘growth-driving’ sectors in their industrial strategy. For the sector to thrive and for the long-term sustainability and success of life sciences and R&D clusters in the UK, innovation, collaboration, and investment in infrastructure are essential. One of the most crucial needs is housing, which is vital for attracting and retaining the right workforce. The leading life sciences clusters are located in cities with high housing costs, and co-living could be the solution, providing affordable, flexible, and attractive housing necessary to create a thriving ecosystem for the sciences sector.

What is co-living?

Co-living has emerged in the UK as a new housing solution aimed at addressing both the housing supply and affordability crises. It is a form of purpose-built, managed rental housing, generally consisting of studio units alongside extensive high-quality communal amenities, such as co-working spaces, lounges, gyms, and cinemas. While similar to Build to Rent, co-living units are typically smaller, with higher levels of amenities and more flexible terms. These developments generally offer all-inclusive rents, are fully furnished, and provide flexible tenancies starting from as little as three months.

The co-living sector is growing rapidly, with increasing investment as it matures, attracting institutional investors such as BlackRock, Realstar, and APG. Savills analysis shows that there are over 9,000 operational co-living units in the UK, with 5,500 more under construction, the majority of which are in London. While this stock and pipeline could potentially support the life sciences sector in London, none have been specifically developed or promoted for this purpose. There is also a limited supply or pipeline of co-living developments outside London, particularly in other parts of the Golden Triangle, including Cambridge and Oxford.

The benefits of co-living

Looking specifically at the Golden Triangle, Savills analysis reveals that in the last five years, the supply of private rented accommodation has declined. In the same cities, median rents have risen by over 30% in the past three years. These factors present significant barriers to attracting and retaining the specialist workforce needed for a ‘growth-driving’ sector. Co-living can help address these issues by delivering purpose-built, high-quality rental housing.

Moreover, Savills analysis of the Golden Triangle also highlights the dual challenge of housing supply and high rents. Co-living all-inclusive rents offer a more affordable rent, and result in savings to residents, compared to studios in the wider market, and residents benefit from fully furnished rooms, as well as added extras like gyms or co-working spaces. Additionally, the locations of co-living schemes often allow individuals to live closer to their workplace, reducing commuting costs.

Savills further indicates that co-living can support graduate retention, as post-graduate students are a key target, particularly those who have spent a significant portion of their university lives living in purpose-built student accommodation and have become accustomed to professionally managed housing. While London boasts one of the highest graduate retention rates, Oxford and Cambridge each lose over 10,000 graduates a year while attracting only 5,000. Recent graduates in the science and R&D sectors from world-leading universities could be encouraged to stay in cities such as Oxford and Cambridge, home to established and growing life sciences clusters, if more high-quality and affordable housing options like co-living were more widely available.

As a result of the size of the private rooms and the mix of amenities, co-living can be adapted to suit various contexts and can deliver more housing on sites than traditional housing. Co-living can also be delivered through retrofitting and adaptation of existing buildings. This is particularly beneficial in constrained sites or locations close to key institutions, such as science parks or hospitals, where the ability to deliver more homes should be a focus and priority to support growth of life science clusters. Co-living also promotes collaboration and community, supporting knowledge sharing, innovation, and networking opportunities. Additionally, the flexible, shorter tenancies can support companies and institutions by providing housing options for training placements or internships.

Co-living supporting high-value employment

Globally, there are successful examples where co-living housing has supported the growth of science hubs by attracting top talent and providing high-quality housing in close proximity to workplaces. For instance, InnoCell at Hong Kong’s Science and Technology Park, offers studio units (14–23 sq m) alongside a range of amenities that mirror the co-living model seen in the UK. InnoCell fosters a shared living environment, promoting a sense of community and collaboration among like-minded talents while being located close to the Science Park.

Similarly, Station F in Paris, one of the world’s largest startup incubators with over 1,000 startups, developed Flatmates to provide a co-living product. This product ranges from studios to shared flats and includes various amenities, designed to address the affordability challenges faced by startups and their talent.

In conclusion, we believe that co-living has the potential to contribute to the ongoing growth and success of life science clusters in the UK. Co-living, due to its purpose-built and managed nature, offers a unique opportunity for those delivering life sciences and R&D schemes to include co-living as an integral part of the infrastructure to support further growth. This coordinated approach not only addresses housing supply and affordability challenges in the market for the workforce, but can also add value to the income and investment value of schemes for developers and investors.

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