Savills launches co-living forward funding opportunity in Leeds

The secure development features a combination of basement car parking, retail spaces on the ground and lower floors, and premium co-living accommodations on the upper floors, designed with extensive amenities including a cinema room, gym, library and games rooms. The development has a total gross internal area (GIA) of 16,025 sqm. The 230 studios will average 28 sqm each, offering significantly more space than other co-living schemes built to date. The projected Day-1 co-living net operating income is £3m.

The proposed development is situated at the heart of The Headrow, in the central retail district of Leeds. It is an approximately seven-minute walk from the main train station and is easily accessible by car via the A64. Leeds is the UK’s fastest-growing city, with its economy expected to grow by 21% over the next decade. The city also has a significant student population, with 75,575 full-time students across five higher education institutions. The thriving economy and high demand for flexible living arrangements makes Leeds an ideal location for a co-living scheme.

Practical completion of the scheme is estimated for August 2028.

Lizzie Beagley, UK head of student and co-living transactions at Savills, said, “Savills estimates that there are 1.9 million people in the UK who fall within the target market for co-living. As a result, we anticipate this scheme will attract significant investor interest, particularly given the rising cost of housing in many of the UK’s larger or more dynamic economies, a challenge that disproportionately affects graduates and early-career professionals. These factors are especially pertinent to Leeds, a rapidly growing city with a clear demand for thousands of additional professional workers over the next decade.”

George Dyer, group investment director at Watkin Jones, commented, “Co-living is rapidly emerging as a solution for people who value affordability, flexibility, and community in their housing choices. This scheme in Leeds offers a rare opportunity for investors to be part of a market-driven solution to rising housing costs, especially in cities experiencing dynamic economic growth. Leeds has a significant student population, a booming economy, and a demand for skilled professionals, and we believe this highly amenitised development is perfectly positioned to meet the needs of the next generation of renters.”