I think having the cot in the parents' bedroom is the perfect compromise, and it used to be the most logical solution, you can see and hear the child (and vice versa) while still having your bed to yourself. We then had the strict rules of putting a baby in his/her own room from the very beginning, followed by the opposite fashion of sharing a bed with the kids. Still I'm all for just do what suits you best!
Estranged Son and Future Granddaughter
To think that London, or anywhere else for that matter, does not belong to any one demographic