Why Co-Living Is Rising in Popularity — Among Tenants and Investors Alike

Published 2026-07-30 · Co-living Insights · By DIFF_RENT Team

City AM recently published a compelling piece on why co-living is becoming an increasingly vital part of the UK housing mix. Here's what it means for London renters — and why DIFF_RENT sits right at the centre of this shift.

A Mainstream Moment for Co-Living

In June 2026, City AM published an insightful piece by Jonathan Long, Head of Corporate Real Estate at Investec, outlining three reasons co-living is rising in popularity among tenants and investors. The article draws on a survey of 50 global institutional investors and ONS data to make the case that co-living has moved from a niche concept to a genuine housing solution — one that the UK is still struggling to build at the scale it needs.

At DIFF_RENT, we've been living this story from the inside. Here's our take on each of the three reasons, and what they mean for people looking to rent in London today.

Reason 1: The People Who Need It Most Are Growing in Number

The City AM piece cites ONS data showing that 29.5% of UK households are now single-person — a proportion that has grown steadily over the past decade. Add remote workers, recent graduates, and young professionals relocating to cities like London, and you have a large and expanding group of people who need high-quality housing that doesn't assume a long-term partner, an established social network, or a willingness to share a kitchen with strangers.

Traditional flatshares ask you to compromise. Hotels ask you to pay through the nose for something impersonal. The private rental market offers little flexibility and increasingly punishing upfront costs. Co-living sits in the gap: your own private studio, fully furnished and equipped, within a building that gives you community and amenities without forcing them on you.

DIFF_RENT Harrow was built precisely for this resident: single professionals, international arrivals, remote workers, people between chapters. The 30+ nationalities in our building aren't an accident — they're a reflection of who London actually is, and who the housing market has consistently failed to serve well.

Reason 2: All-Inclusive Pricing Is Exactly What Stretched Budgets Need

The article makes a point that resonates with everyone who has tried to budget for London living: co-living's all-inclusive model "gives tenants a clear view of their 'all in' costs at a time when household budgets are under pressure."

This is not a minor convenience. When you rent a traditional flat in London, you're signing up for a base rent — and then discovering the real cost over the following months. Utilities that spike in winter. A broadband contract you have to set up yourself. Council tax you hadn't fully factored in. Furniture you need to buy. Cleaning supplies, a vacuum cleaner, kitchen equipment. The extras accumulate quickly and unpredictably.

With co-living, there is one number. At DIFF_RENT, that number covers:

• Your fully furnished private studio
• All utilities — electricity, heating, water
• Superfast broadband
• Access to gym, co-working space, cinema room, rooftop terrace, and communal lounge
• On-site team support

When you compare like-for-like — factoring in everything a traditional flat would cost you to set up and run — co-living is often more competitive than it first appears, and far more predictable. In a period when every household is watching its spending closely, predictability has real value.

Reason 3: The Renters' Rights Act Favours Professional Operators

The third reason in the City AM article is one that's less visible to renters but matters enormously: the Renters' Rights Act, which came into force in June 2026, significantly increased the regulatory and administrative requirements on landlords.

For individual private landlords, this creates friction. Many are exiting the market entirely — contributing to the supply shortage that is pushing rents higher across London. For well-run co-living operators with professional teams and systems, the new framework is manageable. The compliance burden that overwhelms a single landlord with two buy-to-lets is absorbed as part of normal operations for a purpose-built co-living building.

What this means for renters is that professional co-living is increasingly likely to offer better, more reliable tenancies. Proper processes, responsive teams, clear communication — the things that characterised the best private landlords but were never guaranteed. At DIFF_RENT, our team is on-site and our processes are designed for the long term. The Renters' Rights Act didn't change how we operate — it formalised standards we were already meeting.

→ Read the full City AM article by Jonathan Long, Investec

The Gap Between Demand and Supply

Perhaps the most important sentence in the City AM piece is also the quietest: "despite this sector appealing to both investors and developers alike, units aren't being built at the scale we're likely to need."

This is the reality facing London renters today. The case for co-living is well understood. The demand is clear and growing. But the pipeline of new developments is slow, and planning constraints make building at scale difficult. The buildings that do exist — like DIFF_RENT in Harrow — are meeting real, consistent demand from people who have run out of good options in the traditional market.

If you're renting in London and finding the traditional market frustrating, expensive, and inflexible, the City AM piece is worth reading in full. It articulates, from an investment perspective, exactly why co-living exists and why it's here to stay. And if you want to see what it looks like in practice, DIFF_RENT is five minutes from Harrow-on-the-Hill station — book a viewing and see it for yourself.