Recent research by Savills shines a spotlight on the co-living sector, a market that is continuing to grow and generate significant interest from investors, developers and operators.

The research clearly indicates, as would be expected, that London has led the way in terms of delivery in the UK, with the earliest planning consents and now operational sites. It is no surprise, therefore, that London has also led the way in terms of planning policy and guidance on co-living developments.

The London Plan adopted in March 2021 provides the first planning policy framework or guidance for the assessment of co-living developments. Since then, many of the London boroughs have prepared and adopted their own co-living policies to align with the framework set by the Greater London Authority (GLA). Furthermore, the GLA recently published and consulted on detailed planning guidance including prescribed standards for such schemes.

Since 2016, the number of co-living units granted consent in London has exceeded those in the regions. However, interestingly, this was only until 2021 when the number of co-living units consented in the regions was three times those consented in London.

While the number of units submitted for planning in the capital has remained relatively consistent over the last couple of years, 2020 saw a tipping point in the regions when the number submitted exceeded that of London. Last year regional numbers were similar to those of London.

Major cities such as Bristol, Manchester and Liverpool, to name a few, have followed the same pattern as London by developing planning policies or guidance in response to the rise in co-living applications. But with a clear increase in co-living units being submitted and consented in the regions, it seems reasonable to expect that local planning authorities who may not have a specific framework of their own will most likely turn to the London Plan policy and emerging GLA guidance.

That said, with differences in the approach between London and major regional cities, might there be greater flexibility or variation for local planning authorities to refer to in the absence of their own policy or guidance?

London has forged the way, but clearly the regions have caught up with increasing growth and interest across the UK. The result is an evolving and widening area of planning policy and guidance. Beyond the strategic framework that the London Plan provides, it will be interesting to see how co-living policy and guidance develops and is implemented in the regions, across different local planning authorities.

Further information

Contact Mark Thomson

Savills Co-Living

Savills Planning