The draft London Plan introduces a more coordinated approach to PBSA and co-living, bringing both forms of specialist accommodation into a clearer strategic framework. Here, Chloe Brown examines what the changes mean for housing delivery, regeneration and the future prospects of well-connected schemes across London.
The draft London Plan represents a notable shift in the way Purpose-Built Student Accommodation (PBSA) and Large-Scale Purpose-Built Shared Living (LSPBSL/co-living) are addressed. The previous standalone policies (H15 for PBSA and H16 for co-living) have been consolidated into a single policy, HN5: Managing Specialist Accommodation, creating a more integrated framework for alternative living products.
Strategic recognition for PBSA and co-living
A significant change is the stronger strategic recognition of both PBSA and co-living as important components of London’s housing delivery and diversification agenda. The draft policy explicitly acknowledges the role these accommodation types can play in increasing housing supply, diversifying tenure options and accelerating build-out rates. Boroughs are now expected to plan positively for PBSA provision through Local Plans and site allocations, with specific student accommodation targets allocated across most London boroughs. The draft Plan identifies a requirement for 31,549 additional PBSA bedspaces across London over the plan period, providing a considerably clearer policy basis for future delivery.
The draft policy also places greater emphasis on location and connectivity rather than relying solely on prescriptive policy tests. Both PBSA and co-living schemes are expected to be located in areas that are well connected to local services, public transport and, for student accommodation, higher education institutions. Importantly, the policy expressly supports these uses as part of wider mixed-use regeneration and redevelopment schemes, reinforcing their role in unlocking strategic sites and supporting comprehensive regeneration.
For co-living specifically, many of the existing operational requirements remain, including single management arrangements, minimum three-month stays and the requirement for comprehensive management plans. However, the draft policy places a stronger emphasis on communal living and social interaction, requiring developments to provide high-quality communal facilities and amenities while ensuring that private rooms do not become effectively self-contained dwellings.
Positive approach to alternative living products
Overall, the draft policy adopts a more positive and strategically supportive approach to alternative living products than the existing London Plan. Rather than treating PBSA and co-living as distinct exceptions to conventional housing policy, the new framework embeds them more clearly within London’s wider housing delivery strategy. This is likely to provide greater confidence for developers and investors whilst still allowing boroughs to manage local impacts where justified.
Overall, we consider the changes to be broadly positive for both PBSA and co-living sectors. The draft Plan provides stronger strategic support than the current London Plan by explicitly recognising the role these accommodation types can play in meeting housing needs, supporting economic growth and facilitating regeneration. The introduction of borough-level PBSA targets is particularly significant as it should assist in demonstrating strategic need and provide greater certainty for future schemes.
For co-living developers, the continued policy support and the integration of LSPBSL within a wider specialist accommodation framework signals that the Mayor views the sector as an established component of London’s housing market rather than a niche product. Whilst the increased focus on clustering and mixed neighbourhood considerations may create additional scrutiny in some locations, the overall direction of travel remains supportive.
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In our view, the principal opportunity lies in well-connected urban locations and regeneration sites where PBSA and co-living can demonstrably contribute to housing delivery, mixed-use placemaking and wider regeneration objectives. As a result, the draft policy is likely to improve prospects for appropriately located schemes and provide a stronger strategic platform to support planning applications across London.
Chloe Brown is a Chartered Town Planner with experience across large-scale residential, co-living, PBSA, healthcare, education and renewable energy projects.
Another year at UKREiiF and another reminder that, across the property and regeneration sector, the conversation has shifted from ambition alone to deliverability.
The optimism and energy across Leeds remained strong throughout the week – despite the weather (!) – but many of the most interesting discussions centred on a shared challenge: how do we continue to unlock growth, regeneration and housing delivery in an environment where viability remains under sustained pressure?
That theme came through consistently across panel sessions, client conversations and wider industry discussions.
One of the standout moments for Newsteer was Geena Bains speaking at a regeneration-focused “Opportunity Hounslow” session, where she shared practical insights from our work at Convent Way in Hounslow.
Her reflections were refreshingly honest and closely aligned with the realities many projects are currently facing. Viability pressures, policy constraints and wider macroeconomic uncertainty continue to place significant strain on delivery, particularly in London where cost inflation and stagnant sales values are affecting confidence across the market.
Yet while the challenges are well understood, Geena’s central message was clear: successful regeneration still depends on confidence, collaboration and trust.
In increasingly complex projects, credibility matters. Residents, local authorities, developers, funders and delivery partners all need confidence in both the vision and the route to delivery. Future-proofing schemes, establishing the right partnerships and maintaining a relentless focus on outcomes are becoming just as important as the technical and financial aspects of development itself.
Newsteer is supporting the regeneration of Convent Way, providing advice on procurement, land assembly, viability and business case development as part of the wider delivery team.
The wider policy and planning discussions across UKREiiF reinforced many of the same themes.
Speaking at the “Get London Building Again” session, Deputy Mayor for Housing and Residential Development Tom Copley acknowledged that viability and macroeconomic shocks are currently being felt particularly acutely in London. He also highlighted the forthcoming streamlined London Plan, expected to be significantly shorter and designed to reduce duplication while encouraging greater flexibility in how policy is applied.
That move towards flexibility was echoed in several planning sessions across the week, particularly discussions around whether a more rules-based planning system under the draft NPPF would help accelerate delivery or risk reducing the flexibility needed to respond to real-world viability and site-specific challenges.
There was also significant focus on the need to simplify and standardise aspects of the planning process. Discussions highlighted proposals for more standardised Section 106 agreements for small and medium-sized schemes, alongside calls for clearer national policy mapping and greater consistency within local plan policies – while still allowing for local variation where genuinely necessary.
Affordable housing delivery remained high on the agenda throughout UKREiiF. There was broad recognition that funding remains heavily oversubscribed, with strong competition expected for future allocations. At the same time, small sites are expected to play a much more significant role in housing delivery under the emerging London Plan framework – a move likely to generate both opportunity and local debate.
The conversation around confidence also extended into government and delivery agencies more broadly. Several speakers acknowledged the importance of restoring confidence across the sector, particularly amongst SME housebuilders, with Homes England discussions focusing heavily on the proposed Housing Bank and the need to accelerate housing delivery through quicker adoption of policy reforms.
Taken together, many of the discussions at UKREiiF pointed towards an industry trying to adapt to a new operating environment. The market is not standing still, but successful delivery increasingly depends on realistic assumptions, stronger partnerships and a willingness to evolve traditional approaches.
Alongside the formal sessions, UKREiiF remains one of the most valuable opportunities in the calendar to reconnect with clients, partners and industry peers. Newsteer’s annual Flight Club event once again proved hugely popular, bringing together clients and colleagues for an evening of competitive darts, networking and conversations that continued well beyond the exhibition halls.
If there was one clear takeaway from this year’s event, it was that the industry still has ambition – but delivery, flexibility and confidence are now at the centre of the conversation.