Sadiq Khan has set out the first details of his plans for ‘London Living Rent’ – a new type of tenancy that offers newly-built homes at below-market rent.
London Living Rent homes will have rents based on a third of average household incomes in each borough. New homes will be offered to low and middle-income households, typically earning between £35,000 and £45,000, who are currently renting privately. Across London, this would see the rent for a two-bed flat drop below £1,000 – compared to average private rents of £1,450.
According to a statement, the Mayor has already begun working with housing associations and boroughs to kick start the delivery of new homes at these rent levels through their building programmes. The new Mayor of Hackney, Philip Glanville, elected last week, has made a manifesto pledge that Hackney will be the first borough to build 500 homes for London Living Rent.
Khan said, “We know that fixing London’s housing crisis won’t happen overnight, and we need to do everything we can to help Londoners who are struggling to pay their rents. That’s why I’m working with housing associations and councils to build new homes for ‘London Living Rent’ – homes that will offer hard-working, low and middle-income families an alternative to renting privately so they can get by and save for a deposit.”
The newly-elected Mayor of Hackney, Philip Glanville, said, “Hackney is already building more social housing than anywhere else in the capital, but it’s also vital that there are more homes which Londoners on middle-incomes can afford to rent and buy.
“The London Living Rent will help people who work hard but are getting priced out of our city, which is why I’m proud that my first act as Mayor is to pledge that Hackney will be the first borough to see 500 homes built at this affordable level.
“We must make sure that all the people who make London the world’s greatest city, whatever their background, can afford to live here and take advantage of its opportunities, so I’m delighted to be working with Sadiq Khan to help make that happen.”