Is co-living the answer to the UK’s housing crisis?

A report by the British Property Federation (BPF) has investigated the increasing popularity of co-living, and how it can play a role in easing the UK’s housing crisis

There is a growing demand for the government to formally acknowledge the significance of co-living in the upcoming revised National Planning Policy Framework (NPPF).

Co-living is defined as a residential living model in which three or more unrelated people live in the same housing unit.

The style of living could play a crucial role in easing the UK’s housing crisis. The demand for rental properties in the UK significantly outweighs the supply, with a shortage of 11,716 in London alone.

Urgent solutions to the housing crisis are needed

This trend is expected to continue, and the need for more construction of new homes and diverse housing options has never been greater.

The trend initially became popular in London and other major cities but is increasing in popularity across the UK.

It offers a more affordable, professionally managed housing option that was previously lacking. Co-living options often come with flexibility in lease length and the sense of community among residents.

The BPF has called for more policies around co-living

To ensure the continued growth and maturation of co-living, the BPF urgently calls for the following:

• Inclusion of active support for co-living schemes in the NPPF and a requirement for local authorities to allocate space for schemes in their local plans.
• Inclusion of policies in local plans that support co-living.
• Avoidance of overly prescriptive policies, allowing for flexibility within broad market parameters for co-living developments.
• Recognition in affordable housing policies that co-living serves a different housing need compared to traditional housing (C3) and should have reduced affordable housing requirements.

“Much like Build-to-Rent, co-living can help make a significant contribution to the UK’s housing need and alleviate the current housing crisis,” said Mark Corea, policy officer at the British Property Federation.

“By catering to parts of the population which 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. Only through the continued diversification of the living sector is a critical tool in battling the housing crisis,” he concluded.