close
close

The ‘Beds on Sheds’ model should create almost 30,000 new homes in the capital

“Despite a slowdown in the number of new projects coming forward, indicators clearly point to continued interest in this type of development”
-Catriona Fraser-Turley

The ‘beds on barns’ model is reshaping London’s housing market, with more than 22,500 new homes being built as part of co-location schemes granted planning permission in the capital over the past five years, according to the latest research from independent consultants Turley.

Co-location refers to the joining of industrial/logistics, residential and other non-industrial uses to form mixed-use developments. It is a growing development trend in London to increase housing supply and employment.

Turley’s annual ‘Co-location in London’ report assesses the delivery of the beds-on-sheds model in the capital, analyzing approved and live co-location planning applications to understand how this development type will shape the city in the coming years.

According to the report, the colocation schemes that have been granted planning permission over the past five years will deliver a net 271,800 m² of industrial floor space in the capital once built.

With the concept now having had several years to take hold, and in the context of broader market challenges – including rising interest rates, construction costs and other economic and policy-related uncertainties – the latest edition of the report also seeks to understand how the current pipeline of colocation programs are being extended to ground delivery.

Despite these adverse market conditions, co-location developments are still supporting the delivery of affordable housing in London, with 38% of approved schemes being affordable housing – exceeding the 35% target set by the Mayor.

An analysis of current live and approved planning applications also shows a continued interest and belief in co-location.

While there has been a slowdown in the number of new co-location developments coming forward over the past year, Turley has found that 58% of approved developments are showing signs of on-site delivery, while 38% are under construction, including the demolition of existing sites.

If the plans currently awaiting approval are approved and implemented, a total of 29,688 new homes could be delivered in the capital. Together, these plans would also add approximately 375,789 m² of employment space to the market.

Co-location schemes can tackle two of London’s most complex development challenges – increasing housing supply and maximizing employment land – making the beds-on-sheds model an increasingly popular development choice.

Boroughs such as Ealing, Brent and Southwark are currently leading the way in introducing co-location schemes. However, Turley has found that a brighter, more proactive co-location policy environment is also beginning to crystallize in the wider capital, with an increasing number of local planning authorities introducing specific policies, site allocations and masterplans to guide the development of new co-locations. -location schemes.

Catriona Fraser, Director of Planning at Turley, said: “This report, now in its third year, shows that the co-location model is not only here to stay in the capital, but also has the potential to deliver a significant increase in new housing, employment and logistics space, especially in co-location hotspots. such as Ealing, Brent and Southwark.

“Despite a slowdown in the number of new projects coming forward, indicators clearly point to continued interest in this type of development.

“More than a third of the colocation schemes approved over the past five years are currently under construction, so we will be keeping a close eye on how the market responds over the next twelve months and whether this will result in an influx of new schemes are in the pipeline.

“London could become a blueprint for implementing successful co-location programs if the country continues on its current path.”