The British Property Federation has highlighted an increasing momentum for co-living and is calling for the government to recognise the importance of the sector in the forthcoming revised National Planning Policy Framework.
A report by the BPF’s Co-Living Working Group aims to improve understanding of co-living and promote the sector as an important emerging asset class and a vital piece in the puzzle to solve the UK’s housing crisis.
This is made even more timely by the renewed focus on housing ahead of the next UK general election.
Originally, co-living was a sector that featured most strongly in London and other core cities, but there is now a growing pipeline of developments across the UK.
JLL data from June shows that the UK has just over 31,000 co-living beds in operation and development. Developers, operators and investors are looking to diversify their rental residential offer to meet tenant demand, and co-living’s USP and appeal to renters means that it is a growing part of this offering.
The BPF is calling for local authorities to include policies that support co-living in their local plans – policies that are not too prescriptive and allow for broad parameters within which to bring forward co-living developments.
It is also asking for affordable housing policies to recognise that co-living, in the same way as BTR, meets a different housing need from traditional C3 housing need, and a reduced affordable housing offer should be required subject to a covenant that requires units to remain as co-living for a specified period, failing which a clawback payment would be made.
Mark Corea, policy officer at the BPF, said: “Much like BTR, co-living can help make a significant contribution to the UK’s housing need and alleviate the current housing crisis.
“By catering to parts of the population that would otherwise struggle to find appropriate accommodation, co-living is an accessible and affordable option for many and should be recognised as such in policy going forward. The continued diversification of the living sector is a critical tool in battling the housing crisis.”
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