Q) What is Cohousing?

A) A pedestrianised housing estate, common house used for regular meals, self contained units, no shared business, resident design input, non-hierarchical & consensus decision making.

People need community and privacy. Cohousing is a way for people to live together so that they can have as much community and privacy as they want. The concept is simple and immediately comprehensible. It is the way forward for human beings to live together in a safe, independent and caring neighbourhood. It is a revolution that is beginning now. We will no longer just choose a new house when we move, we will join a new community.

Step 1 – Buy the land or building to convert

This is the hardest step, afterwards you are committed and it is then downhill, apart from daily obstacles. Search local estate agents and land agents, subscribe to Estates Gazette – developers’ bible, utility companies, land registry online etc. Best to buy with planning permission or within settlement boundary.

The easiest way of getting finance is to borrow from the seller, no valuation or status checks are necessary. Exchange contracts with a 5% deposit and agree to repay 95% in 12 -24 months when more members have joined. Set up a limited company for about £80 and transfer ownership to it on completion or earlier. Borrow funds from members at least at 10% p.a. to make it attractive. Plot costs also go up by 10% p.a. so loans are effectively free. Appoint architects who are very keen. Do not spend money before buying land. The core group could appoint a developer, if needed, at this stage or earlier.

Step 2 – Inviting members to join

The core group (1 -5 members) will decide on the decision making process – this must be simple, fast and effective. New members should pay non refundable deposits of ~£5,000. Issue shares, voting and non-voting. Draw up simple DIY loan and other agreements between all parties, after planning permission members must buy their plots. Appoint solicitors for selling plots.

Step 3 – Building works

Get finance in principle for building works from a bank eg the Coop or local bank you use. Build cost is about £100 - £150 per sq ft. I recommend a design and build fixed price contract with one contractor. Employ an engineer, architect or technical surveyor as your agent on site. Get defects warranty insurance.

N.B. Take big risks, bury your head in the sand, don’t aim for perfection, copy other people, take advice, be scared – it doesn’t last, don’t read too much rubbish, move fast.

by David Michael (Managing Director of Cohousing Company Ltd. and developer of Springhill, CoFlats and Frankleigh Cohousing Communities)

© This work appears in Diggers and Dreamers: the Guide to Communal Living 2008/2009 edited by Sarah Bunker, Chris Coates and Jonathan How.

Reproduction of the text for commercial purposes, or by universities or other formal teaching institutions is prohibited without express permission of the publishers.