Co-Living: The Future of Urban Housing? A Planning Perspective

Following Watford Council's adoption of comprehensive co-living planning standards in July 2025, joining Birmingham and the Greater London Authority in establishing detailed policy frameworks, we examine what this growing trend means for the future of urban housing.

(Source: Pexels, Ron Lach) 

The housing landscape is evolving rapidly, and co-living is emerging as one of the most significant trends reshaping how we think about residential development. With 13,383 co-living units under construction or with planning permission across the UK in 2024 (according to Watford Council's recent SPD), this innovative housing model has clearly moved from niche concept to mainstream reality.

What makes Watford's recent move so significant? 

Last month, Watford Borough Council joined the small but growing number of UK authorities to adopt dedicated Supplementary Planning Document (SPD) for co-living schemes, following Birmingham (April 2022) and Greater London (February 2024). What sets Watford apart is their proactive approach – establishing comprehensive standards before approving any such developments in the borough, and becoming the first non-metropolitan authority outside London and Birmingham to take this step.

What Exactly Is Co-Living?

Co-living represents a distinct departure from traditional housing models. It provides a shared living experience where residents have private rooms alongside shared amenity spaces that encourage social interaction and a vibrant community atmosphere. Unlike conventional apartments or Houses in Multiple Occupation (HMOs), co-living schemes are purpose-designed with an emphasis on community, featuring private studio rooms typically ranging from 18-27sqm, complemented by extensive shared facilities.

Key characteristics include:

• Private en-suite studio rooms with kitchenettes.

• Extensive communal spaces (kitchens, lounges, workspaces, gyms).

• Professional on-site management and maintenance.

• All-inclusive rental packages.

• Minimum tenancy terms (typically 3 months).

• Adult-only occupation (18+ age restriction).

  
  

Why Co-Living Appeals to Modern Renters

The rise of co-living isn't just a property trend, it reflects fundamental shifts in how people live and work. The model particularly appeals to:

• Young professionals seeking flexible, hassle-free accommodation near employment hubs.

• Remote and hybrid workers who need dedicated workspace and reliable connectivity.

• People new to an area looking for instant community and social connections.

• Those prioritising experiences over ownership who value services and amenities.

The all-inclusive nature, covering utilities, internet, cleaning and often additional services, provides certainty in an uncertain rental market.

The Planning Challenge: Getting Co-Living Right

From a planning perspective, co-living presents unique opportunities and challenges. As Watford's Portfolio Holder for Planning, Councillor Glen Saffery, noted in the SPD's foreword:

"The Council recognises and welcomes the opportunities these schemes can offer as part of our broader housing strategy. However, we are also aware of the potential challenges, such as social isolation or a reduced quality of life, if these developments are not well designed and of poor quality".

Watford's groundbreaking SPD, adopted just last month, demonstrates exactly the kind of proactive approach needed. Rather than waiting for problematic applications to emerge, they have established comprehensive standards upfront. Their SPD establishes clear requirements for:

Design Standards:

• Minimum 4sqm of internal amenity space per resident.

• At least 1sqm of external amenity space per person.

• Proper integration with local communities.

• High-quality public realm contributions.

Operational Requirements:

• Comprehensive management plans.

• Fire safety compliance.

• Sustainable design standards.

• Transport integration (typically car-free developments).

Location Matters: The Geography of Co-Living

Co-living schemes will be centrally located and well served by public transport, supporting a car free lifestyle. Watford's policy restricts co-living to the Core Development Area or within 800m of railway stations, recognising that accessibility is fundamental to the model's success.

This focus on transport connectivity reflects co-living's role in addressing housing needs in high-demand areas where traditional housing models struggle with affordability and availability.

Integration vs. Isolation: The Community Question

One of the most critical planning considerations is ensuring co-living developments integrate effectively with existing communities rather than creating isolated enclaves. Co-living developments must therefore be effectively integrated into the community to ensure their success.

Successful integration requires:

• Contribution to local infrastructure and public realm.

• Design that complements local character.

• Management that encourages resident participation in the wider community.

  
  

The Affordable Housing Conundrum

Co-living raises complex questions about affordable housing provision. Co-living is not considered to be an affordable housing product as it does not provide stable, long term accommodation that is suitable to meet needs on the Councils housing register, particularly for families.

Instead, co-living schemes typically contribute financially to affordable housing provision elsewhere. This approach recognises that while co-living serves an important housing need, it doesn't replace the requirement for traditional affordable family housing.

Looking Ahead: Planning for Co-Living's Future

The rapid evolution of co-living presents both opportunities and responsibilities for planning professionals. Key considerations include:

• Market Maturity: as the sector matures, we're seeing more sophisticated approaches to design, management, and community integration.

• Regulatory Evolution: planning authorities are developing nuanced policies that harness co-living's benefits while managing potential negative impacts.

• Design Innovation: the best schemes are pushing boundaries in creating genuine communities, not just shared accommodation.

• Long-term Viability: questions remain about the long-term sustainability of the model and its place in the housing ecosystem.

• A Growing Policy Framework: Watford's approach builds on the foundations laid by Birmingham (2022) and Greater London (2024), creating a growing body of co-living policy precedents. As co-living interest expands beyond major cities, many local authorities are grappling with how to assess and regulate these schemes. The significance of having established precedents from Birmingham, London, and now Watford is that other authorities have proven frameworks to adapt rather than starting from scratch.

Key elements that authorities might adopt from these established approaches include:

• Clear locational criteria tied to transport accessibility (all three authorities emphasise this).

• Quantitative space standards for both private rooms and communal areas.

• Detailed operational requirements covering management, tenancies, and community integration.

• Robust affordable housing contribution mechanisms.

  
  

The emerging pattern demonstrates that effective co-living regulation requires going far beyond traditional planning considerations to address the unique operational and social aspects of this housing typology.

Practical Implications for Developers and Local Authorities

For developers considering co-living projects:

• Established precedents now exist – Birmingham, Greater London and Watford have created frameworks that other authorities may adapt.

• Early engagement with planning authorities is essential, especially as they develop policies based on these proven approaches.

• Community consultation should be comprehensive and genuine.

• Design quality cannot be compromised – poor co-living risks regulatory backlash across the sector.

• Management plans must be robust and deliverable from day one.

  
  

For local authorities:

• Three proven approaches now provide templates for policy development rather than starting from scratch.

• Birmingham, London and Watford demonstrate the value of proactive policy development over reactive responses.

• Clear standards provide certainty for developers and communities alike.

• Cross-departmental coordination is essential (planning, housing, environmental health).

• Regular monitoring ensures policy objectives are achieved in practice.

  
  

Conclusion: Building on Established Precedents

Watford's adoption of comprehensive co-living standards last month represents an important step in the sector's development, following Birmingham's pioneering approach in 2022 and London's detailed guidance in early 2024. As Councillor Saffery noted "The SPD's forward thinking and collaborative approach will help ensure that this new form of development benefits both the town's existing and future community".

What makes Watford's approach particularly significant is their proactive policy development – establishing standards before receiving applications, and their position as the first non-metropolitan authority outside the major cities to adopt such comprehensive guidance. This suggests co-living policy development is spreading beyond the major urban centres where the sector first emerged.

This growing policy framework signals that co-living has definitively moved beyond the experimental phase. Birmingham, Greater London and now Watford have shown the way, establishing the template that other authorities will likely follow as co-living proposals increase across the UK.

The key to successful co-living lies in recognising it as a distinct housing typology with its own requirements, benefits and challenges. Birmingham, London and Watford have demonstrated how thoughtful planning can harness co-living's benefits while protecting community interests.

However, success requires sophisticated understanding from all stakeholders – developers, planners and local authorities – working together to ensure this innovative housing model delivers on its promise. With established precedents now available, there is no excuse for other authorities to be caught unprepared as co-living interest spreads across the UK.

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What's your experience with co-living proposals? Are local authorities in your area prepared for this growing trend, or are they still playing catch-up?

At Bluestone Planning, we specialise in navigating the complex planning landscape for innovative housing solutions. If you are considering a co-living development or need guidance on emerging housing typologies, we are here to help turn your vision into planning success.

Call +44 1235 766825 or email admin@bluestoneplanning.co.uk – we would be happy to discuss how we can support your project.