"Our research shows these schemes are becoming increasingly sophisticated, with alternative living typologies like PBSA and co-living proving natural partners for industrial uses"
- Catriona Fraser - Turley
Co-location developments, which combine housing with modern industrial space, are set to provide 31,000 new homes across London, according to a recent study by Turley, the independent advisory firm.
The latest report, the fourth in Turley’s annual co-location research series, highlights how the model is evolving to meet the city’s housing and employment demands. Over just two years, the share of co-location applications featuring alternative living formats such as purpose-built student accommodation (PBSA) and co-living has risen from nearly zero to about half of all submissions.
The study also points to a shift towards lighter, more creative industrial spaces in these developments, as noted in the London Plan Consultation Document (2025). Currently, 55% of schemes include creative industrial Class E(g)iii floorspace, a significant increase from the 27% present in existing sites. Meanwhile, traditional warehousing (B8) and manufacturing (B2) uses are less common, appearing in only 29% and 16% of current schemes respectively, compared with 33% and 20% in existing provision.
Despite these changes, co-location projects are making a stronger quantitative contribution to the capital’s industrial land needs. The current pipeline anticipates a 53% increase in employment floorspace compared to what is already on these sites — the highest growth rate recorded so far — while also delivering much-needed housing.
For the first time, Turley has carried out detailed economic modelling to assess the benefits of the co-location pipeline. The firm estimates that if all projects proceed, they could generate £715 million in gross value added annually, support 8,500 direct jobs, and house over 85,700 residents. Encouragingly, 70% of approved schemes are showing progress through planning condition discharges or active construction.
Catriona Fraser (pictured), director for planning at Turley, said, “London’s co-location pipeline demonstrates growing confidence that you can successfully deliver both housing and quality industrial space on the same sites.
“Our research shows these schemes are becoming increasingly sophisticated, with alternative living typologies like PBSA and co-living proving natural partners for industrial uses. Their shorter tenures, professional management structures, and typically more mobile demographics help minimise potential conflicts with industrial operations while contributing significantly to London's housing targets.”
While the housing sector faces delivery challenges, which the London Plan Consultation Document acknowledges with regard to slower build-out rates on co-location schemes, the model’s strategic importance remains clear. The document continues to recognise co-location as a housing delivery method, and its proven ability to provide homes alongside employment space aligns with the Mayor’s growth targets, making it a key part of London’s housing strategy as the city aims to build 88,000 new homes annually.
Fraser added: “This year's findings represent the highest housing delivery total we've recorded since we began tracking co-location four years ago. Despite the challenges facing the housing sector, the sector’s maturation and increasing implementation rates suggest that co-location continues to move from ‘concept’ to ‘reality’ as a means of addressing London's housing and industrial needs.”
