Onward calls for new product called ‘Purpose Built Young Professional Accommodation’ which would be exempt from space standards, affordable housing requirements and 18-metre second staircase rule
A new housing asset class aimed at young professionals could help the government boost housing delivery, according to a centre-right thinktank.
In a paper published today, Onward calls for the creation of Purpose Built Young Professional Accommodation (PBYPA), which would stand alone as a sui generis planning use class.
PBYPA would be aimed solely at young professionals aged under 35. Onward says under its model PBYPA homes would be permanently exempt from minimum space standards, affordable housing requirements and dual aspect rules. The second staircase rule would only apply to PYBPA over 50 metres in height instead of 18 metres under current rules.
The exemption from regulation would allow “the creation of compact studio or micro apartments for young professionals that prioritise affordability and central location over other amenities”.
The paper suggests PBYPA would be preferable to both co-living, which it describes as a “premium product” with high rents, and the private rented sector which “often lacks affordability, consistency and predictability”. It warns demand for shared housing is overwhelming supply and that PBYPA would help reduce this pressure.
Onward argues the mechanisms to create PBYPA already exist as in London co-living and Purpose Built Student Accommodation (PBSA) are exempt from nationally described space standards, or minimum space requirements. It said this makes these products more viable as an asset class.
Onward said PBYPA “offers a realistic, supply-led response to the housing crisis, in the form of a new investable asset class, which could be achieved with public consultation.”
It said: “PBYPA represents a natural and logical evolution of the PBSA and co-living models, with benefits not only for young professionals but for everyone by relieving pressure on the housing market.”
“Designed for young professionals, PBYPA will be characterised by targeted regulatory exemptions to enable young professionals to trade certain amenities, such as space, for greater affordability and proximity to urban employment hubs, whilst providing a new residential asset class for investors.”
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