Co-living: a modern solution to London’s housing crisis

Co-living developments are gaining traction in London, emerging as a fresh and community-focused solution to the capital’s housing challenges, according to planning consultancy Lichfields.

A growing sector

The co-living model is thriving in London, despite limited policy support. Lichfields’ research reveals:

  • Planning Success: Of 34 large-scale co-living planning applications submitted in London, nearly 70% have been approved.
  • High-Quality Living: These developments offer private rooms averaging 20 square metres, alongside shared amenities totalling 5.5 square metres per unit, fostering a sense of community.
  • Broad Appeal: Co-living schemes cater to young professionals and others seeking affordable, flexible, and social living spaces.

Lichfields highlights co-living as a resilient alternative to traditional housing, particularly as planning applications for residential schemes decline and housing delivery falters.

Addressing misconceptions

Adam Donovan, planning director at Lichfields, says:

“Co-living represents a forward-thinking, community-focused lifestyle that addresses modern      urban living needs. It is not a stopgap solution but a legitimate and sustainable part of London’s housing mix.”     

However, misconceptions persist, with co-living often mistaken for HMOs (houses in multiple occupation) or short-term lets. Donovan stresses the importance of educating stakeholders, including councillors, planning authorities, and communities, about the true nature of co-living.

Policy and collaboration

Lichfields’ report underscores the need for better policy support to ensure co-living’s long-term success. While only 25% of London boroughs have adopted or are drafting planning policies explicitly supporting co-living, the sector has proven its potential.
By addressing policy inconsistencies and dispelling myths, co-living can continue to grow and contribute meaningfully to London’s housing landscape.

Unlocking potential

Donovan concludes:

“The conversation about co-living needs to shift – from debate to action. It’s time to embrace this innovative housing model and integrate it into the solutions for London’s housing crisis.”

With its emphasis on affordability, flexibility, and community, co-living stands poised to play a key role in addressing the capital’s chronic housing shortage.