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.
