NPPF 2026: Housing delivery: smaller sites, more flexibility and recognition for co-living

The introduction of “medium development” as a recognised category is quite interesting. This covers residential schemes of 10–49 homes on sites of up to 2.5 hectares. A 20-home scheme being delivered by a local SME builder isn’t the same proposition as a 2,000-home strategic extension, even though both have historically fallen under the broad umbrella of “major development”.

Local plans are also now expected to allocate at least 10% of their housing requirement on sites of one hectare or less, plus another 10% on sites between one and 2.5 hectares, unless there are strong reasons not to. For smaller developers and owners of modest land parcels, that could be genuinely useful. It should give smaller sites a stronger place in the local-plan pipeline rather than seeing most housing growth focused on a handful of very large allocations.

Major housing schemes are expected to deliver at least 40% of homes to the M4(2) accessible and adaptable standard, subject to appropriate exemptions. On the other hand, where affordable housing tenure requirements have been met, authorities are expected to be more flexible about the bedroom mix within the market housing, taking account of current market conditions.

Co-living now has a proper place in national planning policy - the NPPF separately defines large-scale shared living and Policy HO9 sets clear expectations around access to services and public transport, private living and storage space, communal facilities and long-term management.

However, applicants should consider spending less time arguing about whether the product fits policies written for conventional flats, and more time talking about whether the scheme itself actually provides a good place to live. Co-living hasn’t been given an automatic approval, but it has been given proper policy recognition.