The report of the Strategic Director (Growth and Development) is enclosed.

A report submitted by the Strategic Director (Growth and Development) explained the co-living concept as having no standard definition, but as including accommodation which comprised a mix of private studios and ‘cluster-style flats’ (with shared communal areas) in which bedrooms could be rented out individually or in groups. Schemes could also share many of the common characteristics of build-to-rent, such as shared amenity space, and traditional private rented sector (PRS) apartment tenure profiles of one, two and three bed units.

The report examined the issues and concerns raised by the arrival of this sort of provision in the housing market in Manchester. The report examined how the Council should respond to emerging market demand, on the basis that there was no current planning policy context at national or local level. The report also examined the possible implications of these types of properties on the size of the Council Tax base.

The report suggested that whilst an overall planning policy was being formulated, a set of considerations could be applied to any co-living schemes that came forward in the interim period. Those were:

•           Co-living should be restricted to a limited number of key areas of high employment growth within the city centre, and would only be considered as part of an employment-led, Strategic Regeneration Framework (SRF), where it can be demonstrated that a co-living development will provide added value to the wider commercial offer in the area.

•           Schemes must demonstrate that they command support from recently arrived or new employers located in, or in the vicinity of, the regeneration area they form part of. The size and scale of the developments need to be underpinned by the generation of employment opportunities from those employers. Evidence will need to be provided that a scheme will attract specific employers and committed jobs if they are not already present, as well as talent retention and attractiveness for proposed new employees, as part of growth in key sectors in the city.

•           A robust justification demonstrating evidenced need should be provided to underpin each scheme. Developments should target young workers, including professionals and graduates where there is an identified need for a flexible co-living product that can attract and retain talent, supporting economic growth.

•           Safe and secure, zero carbon developments will only be considered. Schemes should be in city centre locations that are well connected, to ensure residents can access public transport, walking and cycling routes in the city.

To help develop a policy for the Council it was proposed and agreed that there should be consultation with stakeholders. The consultation would include consideration of these issues:

•               Development should provide an appropriate mix of cluster flats and private studios, with each scheme tested on its merits. Schemes will be expected to demonstrate how they comply with MCC’s adopted space standards, as part of the Manchester Residential Quality Guidance.

•               In order to ensure appropriate management, a long-term operational management platform will need to be provided for across each scheme in its entirety. This should include a single management and lettings entity, with a long-term commitment.

•               Developers should be required to legally commit to renting only to working households, or households actively seeking work, and precluding letting to students.

•               A maximum stay should be defined for short-term studio lets, for example, six months.

•               Developments must contribute to Council Tax revenue, with Council Tax paid by the operator, in order to strengthen the tax base.

•               A contribution should be made in accordance with the city’s affordable housing policy. Rents should be affordable, but co-living accommodation cannot be seen per se to directly contribute to the delivery of the affordable housing targets for the city.

•               Developments must have a clear place-making delivery strategy, including open spaces and public realm.

•               Planning applications should include a conversion plan to demonstrate how the building could be repurposed through interventions to the layout.

It was agreed that the Council should seek to establish a Manchester Standard for future co-living development in the city, and that the proposals in the report would all help bring that about.

Decisions

1.         To note the concept of co-living, the issues around its development, the nature of the product, and the limited contribution that it could make to the city’s housing offer.

2.         To request that the Strategic Director (Growth & Development) undertakes an appropriate consultation process with key stakeholders on co-living, and reports on the outcomes of that consultation.

3.         To request that this report and the outcomes from the consultation be used to help inform the development of a policy approach as part of the review of the Local Plan, which will be subject to separate further consultation.