Is London Ready to Embrace Co-Living at Scale?

As housing needs continue to evolve, co-living has emerged as a flexible housing typology aimed at

single-person households, combining compact private studios with shared amenities. With the Greater

London Authority recognising large-scale purpose-built shared living (PBSA) through Policy H16 of the

London Plan and supporting guidance, local authorities are faced with the decision to either embrace or limit this model. While some boroughs are welcoming co-living as a way to diversify supply and support younger renters, others are cautious and concerned about design standards, housing delivery trade-offs, or affordability.

Policy Alignment with the London Plan

Since the introduction of London Plan Policy H16, boroughs have responded in a range of ways. A small number have embedded supportive policies in their Local Plans either through direct alignment with Policy H16 or supporting diverse housing models. Others are progressing draft policies that cautiously support the typology under specific criteria. Meanwhile, some boroughs reference the London Plan but lack any explicit co-living policy of their own. Where alignment is strong, local plans recognise co-living as sui generis housing and reinforce the Plan’s key requirements: minimum unit sizes of 18m², shared kitchens and social spaces, and an affordable housing contribution typically via cash in lieu. In some areas, however, emerging policies have introduced more restrictive criteria than the London Plan, such as limiting where co-living can come forward or discouraging its use on allocated housing sites. This divergence creates a patchwork planning environment that can either de risk or complicate the development pathway depending on the borough.

Co-Living Scheme Approvals to Date

London now has a growing pipeline of co-living schemes, though development remains clustered in

select boroughs. Early leader Wandsworth approved over 900 units across multiple schemes, though has since adopted a more restrictive policy stance. Tower Hamlets, originally home to the 705-unit Collective Canary Wharf, the tallest co-living building in Europe, recently approved the even larger Marsh Wall scheme, delivering 795 studios and a £47.9m affordable housing contribution. Brent has approved a hybrid 517-unit co-living and affordable housing scheme in Wembley, and Harrow has two schemes totalling over 320 units. Elsewhere, new schemes have emerged in Ealing (462-unit Castle scheme in North Acton), Hackney Wick (337 units on Wallis Road), City of London (174 units at Beech Street), and Greenwich, signalling growing acceptance of the model across both Inner and Outer London. Many of these approvals were made under the framework of Policy H16, even in boroughs without adopted co- living policies showing how the London Plan is actively shaping delivery.

Untapped Opportunity Areas for Co-Living

While the market is broadening, there remain several boroughs where co-living approvals are limited or where no adopted local policies currently support the typology. That said, this landscape is fluid and evolving. Boroughs like Hammersmith and Fulham are set to host new co-living development as a significant step in diversifying housing options in the borough. Islington is a location that meets London Plan criteria; high PTAL, access to jobs, vibrant centres but has not seen large-scale co-living delivery. Some outer boroughs, such as Enfield, Sutton, and Bromley, offer future potential, particularly where young, single renters are priced out of central locations. The GLA’s guidance encourages boroughs to plan positively for co-living in appropriate areas, especially where development can contribute to housing diversity and unlock new forms of urban living. With more schemes under consideration across London, it’s likely that the current map of co-living provision will look quite different in just a few years.

Final Thoughts: A Turning Point for London Co-Living?

Co-living remains a niche but increasingly relevant housing model for London. With the GLA’s clear policy support and growing investor interest, the question is no longer whether co-living fits into the capital’s housing mix but how, where, and at what pace it will grow. Planning policy is the gatekeeper. Boroughs that align with the London Plan and embrace co-living’s role in meeting modern housing needs are better positioned to attract investment, deliver high-quality schemes, and meet targets for single-person households. Meanwhile, boroughs that resist or delay may miss out on the chance to shape the sector from the outset. As more schemes are delivered and lessons emerge, the potential for co-living to scale particularly in well-connected, high-demand boroughs looks increasingly strong. The next few years will be pivotal.

Co-living is an increasingly relevant housing model