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Beds over sheds could be the future of urban residential schemes

Turley reports co-location of housing and industrial set to deliver over 30,000 London homes.

30 July 2025

Findings from planning consultancy Turley’s recent survey show that co-location of housing and industrial is set to deliver over 30,000 homes across London.


Turley’s latest study in its annual co-location research series also highlights how the co-location model is rapidly evolving to meet London’s dual housing and employment needs.

In just two years, the proportion of co-location applications that include purpose-built student accommodation (PBSA) and co-living has jumped from near-zero to half of applications submitted.


The research also reveals a continued shift towards lighter and more creative industrial typologies within co-location developments. Some 55% of schemes now include an element of more creative industrial Class E(g)iii floorspace. This is up from just 27% of existing provision on these sites.


Meanwhile, while traditional warehousing / manufacturing uses of B8 and B2 are becoming less prevalent, featuring in only 29% and 16% of schemes respectively, down from 33% and 20% of existing provision.


Turley also notes that in quantitative terms, co-location schemes are working hard to address the capital's industrial land requirements. The current pipeline projects a 53% increase in employment floorspace compared to existing provision on these sites. This is the greatest proportionate increase recorded to date, while the sector is simultaneously delivering much-needed housing.


Catriona Fraser, Director, 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."

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