Co-living developments are rapidly gaining popularity in London, presenting an innovative response to the city’s ongoing housing challenges, according to new research by Lichfields. The report, A New Way to Live: Co-living in London, showcases the sector’s growth and benefits while advocating for stronger policy support to secure its future.
Although only 25% of London boroughs currently have or are formulating planning policies explicitly supporting co-living, the sector is thriving. Out of 34 large-scale co-living planning applications submitted in London to date, nearly 70% (24) have been approved. These developments primarily target individuals, such as young professionals, seeking high-quality, affordable, and community-focused living spaces. Typical co-living arrangements feature private rooms averaging 20 sqm and shared amenities of approximately 5.5 sqm per unit, emphasizing both privacy and community living.
With traditional housing delivery faltering and planning applications for residential schemes in decline, co-living is emerging as a resilient alternative and one which can deliver considerable local benefits including affordable housing.
Adam Donovan, Planning Director at Lichfields, a leading UK planning and development consultancy, said: “Co-living represents a fresh approach to urban living, offering high-quality, flexible housing that meets the needs of Londoners today. It’s a way for local authorities and the Greater London Authority (GLA) to meet housing targets and address the broader housing crisis. However, misconceptions still cloud the sector’s reputation. Co-living is not a stopgap solution – it’s a forward-thinking, community-focused lifestyle that deserves its place in London’s housing mix.”
Challenging perceptions
Despite its progress, co-living faces barriers and it is often misunderstood. The findings emphasise the need for a collaborative approach between developers, policymakers and communities to ensure co-living becomes a fully integrated part of London’s housing strategy.
Donovan continues: “The sector is still embryonic and many stakeholders – councillors, planning authorities and communities – don’t fully understand how it works or the benefits. Too often, co-living is mistakenly lumped in with HMOs or short-term lets, but it’s anything but. These are thoughtfully designed spaces that foster community while providing private, high-quality living arrangements.”
The research stresses the importance of demystifying co-living to ensure its success. Educating decision-makers about the design, quality and community benefits of these schemes is critical to addressing misconceptions and unlocking the sector’s potential. By addressing policy inconsistencies and dispelling myths, the sector can continue to grow and contribute meaningfully to London’s housing landscape.
Donovan adds: “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.”
