When a Bedroom Is a Licence: Auditing London’s Compact Co-Living Units in 2026

Co-living has moved from novelty to routine in London’s housing offer. Schemes in zones 2 to 4 advertise en-suite rooms, shared kitchens, co-working lounges and bills included, often with headline rents that look lower than a self-contained studio. For a renter trying to stay in the city, the appeal is understandable. Yet the product being sold is not always a home in the conventional sense. In 2026, the gap between the advertised bedroom and the legal and spatial reality of the unit is the central affordability question.

The first question: what is being rented?

A co-living unit can be a self-contained flat, a room in a shared house, or a unit within a large-scale purpose-built shared living scheme. These are different products with different planning histories and different renting arrangements. The distinction matters before any comparison of floor area. The London Plan’s space standards for self-contained homes are not applied to every shared-living building in the same way. Large-scale purpose-built shared living is addressed through its own policy route, which sets expectations for room size and shared amenity but does not turn a compact room into a one-bedroom flat.

That is why the first viewing question should be: what is the legal and planning description of this unit? If the advert says ‘bedroom’ but the plan shows a room opening onto a shared kitchen, the viewer should ask whether the scheme is classed as shared living, a house in multiple occupation, or something else. If the advert says ‘studio’ but the kitchen is communal, the description is doing too much work. A room can be lawful and still be misdescribed in marketing.

Measuring the room, not the mood board

Advertised layouts often show a bed, a desk, a wardrobe and a chair with little indication of dimensions. The floor plan may be diagrammatic, not measured. A prospective tenant should request a plan with room dimensions and, where available, the total floor area of the private unit. Compare that with the current London Plan expectations for the relevant type of accommodation and with the scheme’s own planning permission. If the unit is described as a self-contained dwelling, the Described Space Standards apply. If it is large-scale shared living, the London Plan’s shared-living policy sets the relevant benchmark. The numbers are not interchangeable.

Space is not only a planning metric. It affects storage, ventilation, sleep, working from home and the ability to host a visitor. A room of 9 or 10 square metres may meet a policy minimum and still leave little space for a bed, desk and wardrobe once a door swing is drawn. The viewer should ask where a bicycle, suitcase, winter coat and cleaning equipment are stored. Shared kitchens also need a ratio: how many residents share each cooker, sink, fridge and cupboard? A generous communal lounge does not compensate for a kitchen that is permanently congested at 7pm.

The licence label and the rights behind it

Many co-living operators use a licence to occupy rather than an assured shorthold tenancy. The label is not automatically decisive. Courts look at substance: whether the occupier has exclusive possession, pays rent, and has a term. A genuine licence can carry different rights from a tenancy, including different notice arrangements and different protections. A tenant should read the agreement before paying a holding fee, not after. Ask for the sample contract, the house rules, the rent-review clause and the termination clause in writing.

Deposit protection, fees and repair responsibilities also depend on the legal status of the arrangement. If the occupier is a tenant, the deposit should normally be protected in a government-approved scheme. If the operator says the arrangement is a licence, the viewer should ask why, and should consider taking advice if the agreement looks like a tenancy in practice. The same applies to council tax, utility caps and service charges. ‘All-inclusive’ is only affordable if the inclusions are clear and the cap is explained.

A viewing checklist for 2026

• Ask for the legal description: tenancy or licence; self-contained dwelling or shared-living unit.
• Request a measured floor plan showing private room dimensions and shared areas.
• Compare the unit with the current London Plan policy route and the scheme’s planning permission.
• Check the shared-kitchen ratio: residents per cooker, sink, fridge and storage cupboard.
• Read the sample agreement before paying: notice period, rent review, fees, house rules and room moves.
• Confirm deposit protection and complaint procedure in writing.
• Ask who is responsible for repairs, cleaning, pest control and fire safety.
• Check fire alarms, escape routes, fire doors and licensing status with the council if unclear.
• Visit at different times of day and speak to current residents if possible.
• Test daylight, ventilation, noise, mobile signal and space for a desk and wardrobe.
• Ask whether the room can be sublet, swapped or used as a registered address.
• Confirm what happens if the building is sold, redeveloped or the operator changes.

The bottom line

Co-living can provide a route into London for people who cannot or do not want a conventional flat. But affordability is not only the monthly rent. It is the amount of space, the security of the agreement and the cost of the things that are not shown in the advert. In 2026, the sensible tenant approach is to treat the marketing as a starting point and the floor plan, the contract and the council’s records as the evidence. If the bedroom is not really there, the rent should not be treated as if it is.