Asset classification – co-living developments - KBCN1568
This guidance is intended as a general reference only. Each co-living development will include a different combination of residential accommodation and managed communal spaces. Assessors must apply professional judgement to determine the most appropriate asset classification.
Typical characteristics of co-living developments
Developments within these sectors typically include the following characteristics:
- Institutional ownership and professional management
Purpose built for rental as the primary function, rather than individual sale, and owned by a single entity with professional property management in place.
- Self-contained, functional units
Residential apartments with private kitchens and bathrooms.
- Managed communal facilities
Extensive shared amenities, such as fitness suites, co-working areas, communal terraces, and secure bicycle storage.
- Flexible, long-term tenancy
Tenancy agreements are generally designed for longer term occupation, typically six to twelve months.
Classification guidance
International assets:
The following classifications are recommended:
| Assessment Type |
Recommended Classification |
| International New Construction, International Refurbishment and Fit-Out (will become Refurbishment and Fit-out from V7 onwards) |
Residential institutions- long term Stay* |
| BREEAM In-Use (BIU) |
Residential |
*Assessors should also consider how the asset is classified under relevant local building regulations to support the interpretation of Residential Institution.
UK NC assets (KBCN1225, provides additional clarification):
Using Building Regulations classifications as a guide
- Part L, Volume 1 (Dwellings): Classified as Residential, covered under UKNCR (formerly known as HQM).
• Part L, Volume 2 (Buildings other than dwellings): Classified as a Residential Institution, covered under UK New Construction.
17-Jun-2026 - Guidance revised and updated for clarity
Information correct as of 22