From the Market Insights discussions at the Coliving Conference 2023, this article delves into the complexities of coliving regulations across Europe. In collaboration with Coliving Conference, it highlights strategies for achieving harmony and fostering collaboration in this diverse landscape. Unlock insights on creating consistent policies for coliving success — read more on Coliving Insights.
Bridging the Gap: Harmonising Coliving Policies & Regulations
This session successfully unpacked the nuances of coliving regulations across Europe & explored strategies for harmonisation & collaboration in the industry.
This panel proved to be an incredible learning opportunity for the audience as they gathered knowledge from industry leaders as they discussed the disparities in coliving regulations across European countries. The attendees discovered the strategies and initiatives aimed at achieving harmonisation, fostering collaboration and creating a more consistent compliance approach for the coliving industry.
What was covered in this session?
- Attendees gleaned insights into the nuanced variations and challenges within coliving regulations across diverse European countries, shedding light on the industry's struggle for a cohesive approach.
- The audience immersed themselves in the strategies and initiatives orchestrated by key stakeholders, aiming to bridge gaps and establish a more uniform and supportive policy landscape for coliving ventures throughout the region.
- This session provided a unique opportunity for direct engagement with influential leaders and experts. Their shared insights included collaborative approaches and best practices, steering towards the harmonisation of coliving compliance policies, fostering growth, and nurturing a vibrant coliving ecosystem across Europe.
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Defining Coliving in Amsterdam and the UK
In this discussion on bridging the gap in harmonising coliving policies and regulations, the panellists from Amsterdam and the UK emphasise the importance of defining coliving. Jermaine Browne, representing the company Re:Shape Living, mentions the challenge of varying definitions in the industry. In Amsterdam, what would be considered a House of Multiple Occupancy (HMO) in the UK is often categorised as coliving. In London, there's a push to define "shared living" with criteria like a minimum stay of three months to make coliving more residential.
Alex Lijkwan from Hielkema & Co further delves into the distinction between commercial coliving, such as hotels and service apartments, and residential coliving, which resembles larger shared houses. The UK has seen a surge of institutional capital and private equity investing in coliving, leading to discussions about how to regulate large-scale ground-up developments. Alex emphasises that finding the right definition is crucial for ensuring that different coliving models are appropriately categorised and regulated to meet the specific needs of each type.
Rental Control and Affordability in Coliving
Jermaine Browne raises the issue of rental control in the UK, which is a topic of discussion, especially in light of the Labour Party's proposals. He notes the potential impact on coliving, where commercial coliving (like hotels) might not be subject to such controls, making it an attractive option. On the other hand, applying rental control to residential coliving raises questions about whether it covers only the base rent or also the service charge.
Alex adds that institutional capital and private equity are viewing coliving as an affordable option, with costs potentially 20-30% lower than build-to-rent properties. He highlights the need for clear regulations that consider the unique aspects of coliving, especially the all-inclusive service nature. This is particularly important as the market evolves to offer a more flexible, convenience-driven coliving experience. Alex underscores the importance of developing regulations that promote affordability without stifling innovation in the sector.
Regulations and Definitions in the Netherlands
Inge Gründeman, Policy Advisor on Housing at the City of Amsterdam, delves into the coliving regulations in Amsterdam. She explains that the city aims to strike a balance between coliving and traditional households to address housing shortages and prevent overcrowding. The city defines a "household" as those intending to live together indefinitely with mutual care and division of labour, which sometimes poses a challenge for coliving groups like students, expats, or young professionals.
Alex Lijkwan discusses the limitations imposed by Amsterdam's definition of a "household" in the context of coliving, particularly regarding room-by-room contracts for individual occupants. He emphasises the need for modernising these definitions to facilitate coliving development and create a fair playing field for investors. Alex underscores the importance of striking a balance between regulating coliving and enabling its growth to address housing needs effectively.
Challenges and Opportunities in Coliving Developments
The panellists address the challenges and opportunities in coliving developments. Alex Lijkwan points out that transforming existing hotels into coliving spaces may not always be the most commercially optimal choice, especially in inner cities due to high costs. He highlights the trend of developers moving towards larger ground-up developments in suburban areas, which can be more cost-effective.
Inge Gründeman discusses the city's efforts to find a balance between coliving and traditional households by creating a quota system to limit coliving permits in certain neighbourhoods. The goal is to prevent nuisance and maintain housing options for families while accommodating the growing number of one-person households. Alex Lijkwan adds that it's essential to consider cost-effectiveness in coliving projects, especially in inner cities where space is limited. He also mentions the need to streamline regulations to encourage responsible coliving development while addressing housing shortages.
Building Awareness and Future Perspectives in Coliving
Inge Gründeman concludes by emphasising the importance of creating higher awareness and modernising definitions to accommodate coliving in the changing housing landscape. She recognizes the challenges of balancing housing stock and the intensity of coliving in neighbourhoods. The focus is on exploring new opportunities to facilitate coliving, particularly for students and one-person households.
Throughout the discussion, the panellists from Amsterdam and the UK provide valuable insights into the complex world of coliving, regulations, and the ongoing efforts to harmonise policies to adapt to the changing needs of residents and developers. Jermaine Browne, Alex Lijkwan, and Inge Gründeman contribute their perspectives to this dynamic conversation on the present and future of coliving. They collectively stress the need for clear, adaptable regulations and an open mindset to ensure that coliving remains a viable housing solution.
Reflecting on the success of the first 2 editions, Coliving Conference 2025 is now in full swing. The 2-day conference is set to bring another year of industry-leading discussions, featuring expert insights, emerging trends, and innovative ideas shaping the future of shared living. Secure your spot today and be part of the conversation.