London co-living sector shows signs of maturity as applications accelerate

The London co-living sector has entered a more established phase, with a sharp increase in planning applications and greater consistency in how schemes are being brought forward, according to new analysis.

The analysis, by national planning and development consultancy Lichfields, follows its November 2024 research and examines all major co-living planning applications submitted in London since mid-2024. It finds that 26 schemes, totalling more than 10,000 co-living homes, have been submitted, representing more than 40% of all co-living applications in the capital since 2018.

More than 75% of London boroughs have now seen at least one co-living application, up from around half in mid-2024. Average scheme size has increased from 295 units to 385, reflecting the submission of several large developments. Co-living is also being incorporated into major regeneration masterplans including Barking Riverside, Edgware Town Centre and Earl’s Court.

Commenting on the analysis, Adam Donovan, Planning Director at Lichfields, said: “Over the past 18 months there has been a marked increase in the number of co-living applications, alongside greater consistency in how schemes are designed and assessed. Early schemes often raised fundamental questions about policy fit and acceptability. Now there is a greater understanding of the sector and more consistency in applications in terms of the form of development and approach to addressing policy. This has reduced uncertainty and allowed decision-making to focus on quality, management and long-term operation.”

Recent schemes also show greater alignment with London Plan Guidance. Average internal communal space per unit has reduced slightly, reflecting the adoption of the London Plan Guidance’s tiered approach and a move away from rigid quantitative requirements towards qualitative design assessment.

Approaches to affordable housing vary across London. Of the schemes submitted since mid-2024 there is an even split between those providing on-site affordable housing in the form of conventional C3 homes or discount market rent and those providing a payment in lieu, although viability remains a key constraint.

Donovan said the inclusion of co-living within large regeneration masterplans was a further indicator of growing confidence in the sector.

He added: “The fact that co-living is now being incorporated into major London masterplans alongside conventional housing points to a clearer understanding of the role it can play within mixed and balanced communities. While it remains a relatively small part of overall housing supply, it has established a more predictable footing within the planning system.”