Can Shared Living Solve the Affordability and Viability Challenge?

how the sector can deliver homes that are both financially viable and genuinely affordable.

Affordability and viability may be two of the most overused words in the property sector, but they remain impossible to ignore. With construction costs rising, regulation increasing and traditional funding models under pressure, the shared living sector is being forced to rethink how – and what – it builds. 

Experts from across PBSA, co-living, BTR and development explored how the sector can deliver homes that are both financially viable and genuinely affordable. 

The discussion, chaired by Deenie Lee, brought together Damian Sharkey, Managing Director at HUB; Natalia Muksmoor, Partner at Sheppard Robson Architects; Michael Lau, Head of Projects at Arlington Group; and Josh Murrie, CEO of Abodus. 

Here are some of the key takeaways. 

Viability starts with collaboration 

Viability can't be something developers try to fix halfway through a project. It needs to be considered from day one, with investors, developers, architects, operators and planning teams aligned from the outset. 

The earlier these conversations happen, the more opportunity there is to make informed decisions about what a building genuinely needs to deliver – and where costs can be reduced without compromising quality. 

With traditional funding and exit models becoming harder to secure, the panel also highlighted the need for greater flexibility, including new approaches to land acquisition, public-private partnerships and developers holding assets for longer. 

Good design doesn't have to mean expensive design 

Design has a critical role to play in both capital and operational costs. 

The focus should be on creating buildings that are efficient, durable and high quality over their entire lifecycle, rather than simply reducing upfront construction costs. 

This means bringing the right expertise into projects early and making decisions about cost and quality before a scheme is too far advanced to change. 

Have we gone too far with amenities? 

One of the most interesting questions was whether the sector has become caught up in an amenities arms race. 

Over the past decade, PBSA and BTR developments have increasingly added gyms, cinemas, games rooms, roof terraces and other facilities to differentiate their products. 

But are residents actually willing to pay for them? 

The panel questioned whether the sector should instead focus on the basics: well-designed homes, good locations and a strong resident experience. 

There may be an opportunity to strip back and invest less in expensive amenities that residents don't value enough to pay for – and more in the quality of the living experience. 

Affordability means different things to different people 

There is no single definition of "affordable". 

What is manageable for one resident may be completely out of reach for another, and affordability varies significantly between cities. 

The panel suggested that developers should consider creating more choice within schemes, with different room types, cluster sizes and price points. 

This could allow residents to choose the balance of privacy, space and service that works for them, rather than making every room a premium product. 

The sector should also look at existing accommodation stock. Upgrading older buildings could provide more affordable options while making better use of what already exists. 

PBSA is part of the wider housing solution 

The panel argued that PBSA should be recognised as part of the UK's wider housing system. 

If students have access to good-quality purpose-built accommodation, fewer may need to live in traditional family homes converted into HMOs. This could help release housing stock back into the wider market. 

The same principle applies to co-living and other forms of shared living. 

The challenge is that this contribution isn't always recognised in government housing policy. 

The sector needs to make a stronger case for the role shared living can play in addressing wider housing pressures. 

Universities have a bigger role to play 

Universities are often among the largest landowners and economic drivers in their cities, while also having a direct interest in ensuring students can access suitable accommodation. 

The panel highlighted the potential for more public-private partnerships and joint ventures, bringing together university land and expertise with the development and operational capabilities of private partners. 

There is an opportunity for universities to use their assets more strategically to help address both supply and affordability. 

Could shared living become more flexible? 

The boundaries between PBSA, co-living and BTR are increasingly blurred, yet the planning system often treats them as entirely separate. 

The panel questioned whether buildings should be able to adapt more easily to changing demand. 

For example, could PBSA buildings be used differently outside term time? Could co-living accommodate a broader range of residents? Could buildings adapt as people's needs change? 

There are obvious challenges around planning, funding and taxation, but greater flexibility could improve both viability and affordability. 

The opportunity is to rethink the whole system 

The affordability and viability challenge won't be solved by one intervention. 

It requires a more fundamental rethink of how we design, fund, build and operate shared living. 

Design needs to become more efficient. 

Developers and universities need to collaborate more closely. 

Government policy needs to be more joined up. 

Planning needs to become more flexible. 

And the sector needs to demonstrate more clearly how PBSA, BTR and co-living can contribute to solving the UK's wider housing challenges. 

Perhaps the biggest opportunity lies in stepping back from individual sectors and thinking about the bigger picture. 

Rather than asking how we make PBSA more affordable or BTR more viable, perhaps the question should be: 

How do we create a shared living system that gives people more choice, creates better places to live and makes better use of the homes and buildings we already have? 

This discussion took place at the Housed Summit at UKREiiF on 21st May 2026.

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The topics in this conversation will be continued on the Housed Shared Living Podcast - listen each week via all major podcast plaforms.