UK: The British Property Federation (BPF) has called for the government to formally recognise the importance of the coliving sector in the forthcoming revised National Planning Policy Framework.
A new piece of research, written by the BPF’s Co-Living Working Group, aims to improve understanding of coliving and as such, consolidate the offer as “an important, emerging asset class and a vital piece in the puzzle to solve the UK housing crisis”.
JLL data from June 2023 shows that the UK has just over 31,000 coliving beds in operation and development. BPF says developers, operators, and investors are looking to diversify their rental residential offer to meet tenant demand, and coliving’s USP and appeal to renters means that it is a growing part of this offering.
The report highlighted “the clear benefits of coliving”. With growing affordability constraints and an increasing desire for many to live in an urban location, coliving is “well positioned to offer a more affordable, professionally managed housing choice to renters, an option that has not thus far been available”.
“This, alongside the flexibility of lease length and a genuine sense of togetherness and community involvement, renders coliving a highly attractive choice for prospective residents,” says the BPF.
In order to make sure that coliving continues to grow and mature, the BPF is calling for:
– The NPPF to provide active support for coliving schemes and require local authorities to include an allocation for Co-Living schemes in their local plans.
– Local authorities to include policies supporting coliving in their local plans.
– Policies to not be too prescriptive and in turn allow for market broad parameters within which to bring forward coliving developments.
– Affordable housing policies to recognise that coliving, in the same way as BTR, meets a different housing need than traditional C3 housing need and a reduced affordable housing offer should be required subject to a covenant that requires units to remain as coliving for a specified period failing which a clawback payment would be made.
Mark Corea, policy officer at the British Property Federation, said: “Much like build-to-rent, coliving 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 which would otherwise struggle to find appropriate accommodation, coliving 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.”
