Report

Towering Ambitions

This report from UK think tank Onward proposes the creation of a new sui generis (use of its own kind) residential building type for young professionals.

This paper proposes the creation of a new sui generis (use of its own kind) residential building type for young professionals: Purpose Built Young Professional Accommodation (PBYPA). PBYPA will be exempt from certain key regulations, allowing the creation of compact studio or micro apartments for young professionals that prioritise affordability and central location over other amenities.

The Government has pledged to build 1.5 million homes, but the urban housing crisis remains particularly acute and the solutions proposed by the Government fail to prioritise urban densification. This is contrary to the benefits of agglomeration and ignores the market of young people flowing into cities for work. PBYPA would fill this gap in economic hubs where demand from young professionals (aged up to 35) is great, including London, Manchester, Bristol, Bath, Brighton and Leeds.

The mechanisms to create PBYPA already exist. In London, Co-Living and Purpose Built Student Accommodation are exempt from Nationally Described Space Standards, or minimum space requirements, and have special affordable housing requirements. But neither of these existing classes serve or adequately serve young professionals.

Beyond meeting housing demand, this new category, PBYPA, takes advantage of the filtering phenomenon to alleviate housing shortages (the process through which the provision of a new dwelling reduces pressure on existing stock by diverting demand), brings economic benefits, and adds practical weight to the YIMBY movement. It 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, legal changes to the use classes order, and updates to the National Planning Policy Framework (NPPF).