A new report from independent advisory firm Turley has revealed that Co-location developments, where housing is integrated with modern industrial space, could deliver more than 31,000 new homes across London, while simultaneously boosting the city’s employment capacity.
Now in its fourth year, Turley’s annual Co-location research series shows the model is evolving rapidly to respond to London’s dual need for housing and industrial space.
Property Week reported the report finds that 50% of Co-location applications now include alternative residential formats, such as purpose-built student accommodation (PBSA) and Co-living units, a sharp increase from near-zero just two years ago.
The research also highlights a continued shift towards lighter, more creative industrial uses.
Class E(g)iii industrial space, which includes research and development, light manufacturing, and design studios, now features in 55% of schemes – up from 27% in existing site use.
In contrast, traditional B8 warehousing and B2 manufacturing are declining, appearing in just 29% and 16% of applications, respectively.
Despite this evolution in typologies, the industrial element of Co-location is growing in scale.
The current pipeline represents a 53% increase in employment floorspace on Co-location sites compared to what currently exists—the highest increase recorded since the research series began.
For the first time, Turley has also conducted detailed economic modelling, estimating that the Co-location pipeline could generate £715 million in gross value-added annually, support 8,500 direct jobs, and provide homes for over 85,700 people.
Encouragingly, 70% of approved schemes are progressing, with visible signs of implementation either through the discharge of planning conditions or active construction.
Catriona Fraser, Director for Planning at Turley, said the findings demonstrate growing industry confidence in the model:
“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 London Plan Consultation Document (2025) acknowledges that build-out rates for Co-location schemes have historically been limited, it continues to identify the model as a strategically important component of the capital’s housing supply.
The Plan’s endorsement reinforces Co-location’s role in helping meet the Mayor’s goal of 88,000 new homes per year.
“This year’s findings represent the highest housing delivery total we’ve recorded since we began tracking Co-location four years ago,” said Ms Fraser.
“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.”
