This prevents new and innovative building designs from being tested (say, with shared communal cooking areas or bathrooms)
no what prevents these from being tested is that literally no one would ever want to live in a house with a toilet or kitchen: those things are terrible enough in university accommodation or large house shares as it is: just imagining how much worse it'd be with 20 people sharing a kitchen and no clear idea who would be responsible for actually cleaning it.
Its the sort of pie-in-the-sky concept that idiots that haven't actually lived in the real world propose without actually talking to the people that need housing.