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Co-living in Scotland – A tale of two cities

21 Apr 26

In the absence of clear policy guidance, co-living developer and investor interest will be pushed elsewhere. In the context of Edinburgh’s local housing emergency, this seems a missed opportunity.

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We are increasingly advising on the planning prospects for co-living developments in both Edinburgh and Glasgow.

For those not familiar, co-living is an alternative form of build to rent housing, seen as a more affordable and flexible housing solution for city dwellers.

Generally built at high density within urban centres, a typical co-living development offers private studio accommodation alongside communal areas for cooking, dining, socialising, working and exercising.

The UK’s co-living sector is expanding rapidly from London into regional cities. Evidence from completed schemes indicates a diverse tenant base covering a broad demographic often aged between 26 and 40.

The co-living sector is capable of meeting a range of housing needs at significant scale, offering an important contribution towards tackling the national housing crisis.

Glasgow and Edinburgh have the right demographics and economies to make co-living a viable proposition. This is borne out by developer interest. However, at present the respective planning authorities’ responses to this emerging sector differ significantly.

In 2024 Glasgow City Council published their ‘Large-Scale Co-living’ Planning Guidance, providing a clear policy framework for the assessment of development proposals.

The Glasgow pipeline is growing, with several planning applications offering co-living currently in the system. In July 2024, Scotland’s first co-living planning permission was granted in Glasgow at Yorkhill Quay next to the River Clyde (400 units). Iceni Projects is currently in pre-application discussions with Glasgow City Council and will shortly submit an AMSC to bring forward the co-living plot on the site. Elsewhere in Glasgow, we secured a resolution to grant for a major co-living development at Morrison Street (420 units) and are progressing another co-living application at Anderston Quay (302 units).

In contrast, the co-living model has yet to gain a foothold in Edinburgh.

During recent pre-application discussions with the City of Edinburgh Council, we found limited enthusiasm for co-living as a concept. The development model conflicts with key planning policies such as those relating to minimum unit size, tenure mix and affordable housing, with seemingly no flexibility in their application. As such, our client’s proposal did not ‘pass go’.

In the absence of clear policy guidance, co-living developer and investor interest will be pushed elsewhere. In the context of Edinburgh’s local housing emergency, this seems a missed opportunity.

Preparation of Edinburgh’s new Local Development Plan – City Plan 2040 – is underway.

An upcoming ‘Call for Ideas’ consultation offers the opportunity to seek specific provision for alternative housing types, such as co-living, within the new policy framework.

However, City Plan 2040 adoption is not envisaged until 2028. Whether prospective developers and investors in Edinburgh are willing to wait until then for a policy resolution is another question…

If you would like to talk to us about co-living opportunities in Scotland or are interested in responding to the upcoming ‘Call for Ideas’ consultation, please do get in touch.