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Flatshares are completely normal in many UK cities and they are marketed directly as Student Houses in places like Cambridge. Rightmove even has a special checkbox for them.

I've never heard it called "co-living" however.

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Flatshares are completely normal for students but those co-living spaces aim at people with several years of work experience who still can't afford their own flat in a reasonable location.

Strikes me that it's just a rebranding of flatshares for people who consider themselves too old and too professional to be living out a Peep Show esque post-university existence.

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