There is a good article by Hayley Trim in Family Law today discussing this issue. The question arises from the judgment of Lord Justice Thorpe in Re S (A Child)  EWCA Civ 705, where he referred to the observation of Lord Justice Ward in Re B (A Child)  EWCA Civ 1968 that one cannot have a contact order without having first determined who the person is with whom a child lives, and extended this to read that a contact order cannot be made unless it can be attached to a residence order.
I recall that when I read Re S I felt very uneasy about this proposition. After all, many is the time that I've seen courts make contact orders without making residence orders - was the court wrong on every such occasion? On the other hand, could Lord Justice Thorpe be wrong? Hayley Trim believes that he is, and I agree with her. Lord Justice Ward was merely stating the obvious point that before a contact order is made one must first determine with whom the child lives "because it is that person who has to allow the child to visit or stay with the applicant for the contact order", but that is not the same as saying that a residence order must be made in favour of that person.