London Living Rent to help renters save for a deposit

Details of plans for a new type of tenancy for new build, affordable homes in London have been confirmed by the new Mayor, Sadiq Khan.

The programme-London Living Rent-has been proposed in order to assist average earners in the capital save for a tenancy deposit. This is through offering them a below market rent, based on a third of average household incomes in each London borough.

Savings

These homes will be offered to both low and middle-income households, earning between £35,000 and £45,000 per year and currently renting. It is forecasted that in London, this will see rents for a two bed flat fall below £1,000, in comparison to average rents of £1,450.

In addition, Mr Khan has put forwards his intention to protect the capital’s stock of social housing for people in low incomes. Khan has pledged to work closely with housing associations and boroughs to deliver these homes.

‘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.’[1]

London Living Rent to help renters save for a deposit

Committed

David Montague, chief executive of L&Q and chair of G15, believes firms are committed to working with Mr Khan to make London more affordable for renters.

Montague said, ‘we want to provide new homes in a way which doesn’t involve setting rents beyond the reach of ordinary Londoners. This can be achieved as part of a mainstream grant funded affordable housing and regeneration programme in which housing associations retain flexibility over rents and asset management. A new agreement could include a move away from rent conversions on existing social rented homes where we agree that these homes are fit for purpose.’[1]

The new Mayor of Hackney, Phil Glanville, said he has already made a pledge that Hackney will be the first borough to build 500 homes for London Living Rent. He noted: ‘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.’[1]

‘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,’ he added.[1]

[1] http://www.propertywire.com/news/europe/new-tenancy-scheme-launch-london-help-renters-save-home-deposit/