Plans for 300 co-living units near Nottingham railway station are being recommended for approval, despite unresolved negotiations over almost £4 million in developer contributions.
Wavensmere NG2 Limited wants to demolish Waterway House on Waterway Street and replace it with a six-storey building containing private accommodation alongside shared facilities, including workspaces, a gym, cinema room and rooftop padel court.
Nottingham City Council’s Planning Committee is due to consider the application on 23 September. Officers recommend granting permission subject to conditions and a legal agreement, but the amount the developer would contribute towards affordable housing, public open space and employment support has not yet been settled.
The proposal marks a change from an earlier scheme for the site. Planning permission was granted on 21 May 2024 for 191 apartments in a development reaching eight storeys. The latest application proposes a lower building with more individual units, using a co-living model.
The report describes co-living as professionally managed rental accommodation combining private living space with shared amenities. Officers say it offers an alternative for young professionals, key workers, graduates and other single-person households, and that a needs assessment submitted with the application demonstrates demand in Nottingham.
The quarter-hectare site sits between Crocus Street, Newthorpe Street, Waterway Street and the tram line, on the southern edge of the city centre, immediately north of the Meadows. It contains a vacant two-storey office building dating from the 1970s and surrounding hardstanding.
Under the plans, the residential accommodation would occupy the first to fifth floors around a central landscaped courtyard. Shared facilities would include a reception and concierge area, co-working spaces, meeting and dining rooms, lounges, a games room and laundry facilities.
Around 1,116 square metres of indoor communal space and 674 square metres of outdoor amenity space are proposed, including the courtyard and rooftop areas.
However, 40 of the 300 units would be smaller than the minimum private accommodation size identified in the council’s co-living guidance.
Those studios would measure between 20 and 24.9 square metres, below the 25-square-metre guideline. The remaining 260 units would meet or exceed that benchmark, with the largest measuring 30.6 square metres.
Officers say the smaller units result from a design approach intended to retain wider corridors, longer views through the building and natural light in circulation areas. They argue that fitting in accommodation differently to meet the size benchmark throughout would produce narrower corridors and a poorer overall living environment.
The report also says the scheme would provide 3.7 square metres of indoor communal space per resident, above the guidance requirement of 3.5 square metres.
Daylight assessments found that 61 per cent of rooms met a strict application of the relevant daylight criteria, rising to 70 per cent when an alternative target for studio accommodation was used. A separate assessment of the main living areas found that 78 per cent of units achieved recommended daylight levels.
Officers consider the overall provision acceptable, taking account of access to well-lit communal facilities and nearby public open spaces.
The development would be car-free, with 152 secure cycle parking spaces. Officers support that approach because of the proximity to the railway station, trams and city centre facilities. The draft decision notice states that residents would not be eligible to park in nearby residents’ parking schemes.
A central issue still being assessed is whether the development can afford the financial contributions normally required under council planning policies.
The report identifies an expected contribution of £3,432,664 towards affordable housing elsewhere, £403,500 towards public open space and £127,336 towards local employment and training — a combined £3,963,500.
The developer has submitted a financial viability assessment, which has been independently reviewed by an assessor appointed by the council. Negotiations and consideration of further evidence remain ongoing, with an update promised at the committee meeting.
Officers recommend securing whichever contributions the assessment shows the scheme can support. If none can be supported at this stage, they propose a further viability review if substantial commencement works have not been completed within two years of permission being issued. That review could result in contributions becoming payable.
Construction-phase employment and skills recruitment targets would also be secured through the legal agreement.
Nottingham Civic Society welcomed the reduction in height compared with the approved scheme, saying it would reduce the impact on nearby heritage buildings and the Station Conservation Area. However, it raised concerns that the revised design was more generic, with repetitive windows and less architectural interest.
Planning officers consider the proposed brick building appropriate for its surroundings and conclude that it would not harm the setting of the conservation area.
The report records no public representations following consultation, which included letters to 71 neighbouring properties.
The site is in Flood Zone 2. The Environment Agency has raised no objection, and officers say the development would be safe subject to mitigation measures. Conditions would require further drainage details and a flood management plan before occupation.
Councillors have not yet decided the application. If they support the recommendation, final permission would remain subject to completion of the legal agreement and planning conditions, with officers authorised to finalise those details.
