Worldwide icon-chevron-right Europe icon-chevron-right United Kingdom icon-chevron-right England icon-chevron-right London icon-chevron-right Sadiq Khan has announced plans for a 'London Living Rent' scheme
News / Property

Sadiq Khan has announced plans for a 'London Living Rent' scheme

Sadiq Khan, Mayor of London
Photo: Andy Parsons

Sadiq Khan has been pretty busy since he was voted in as the new Mayor of London back in May. He's launched a one-hour 'hopper' bus ticketset up toxic air warnings at London's tube stations and bus stops and he's finally got the night tube up and running.

So, what's next on his agenda? Well, he's just announced plans to launch a London Living Rent scheme, which will offer cheaper rent to low and middle-income households.

It's in the early stages at the moment, but the plan is to build new houses where the rent costs will be based on a third of average household incomes in each borough. According to stats from the Mayor's Office, the scheme means that households with an average income of between £35,000 and £45,000 could rent a two-bed London Living Rent flat for below £1,000, compared to £1,450 for a private rental. Sure, £45,000 might sound like a lot – but because it's the average household income, its means that two people on salaries of £17,500 could be eligible for the scheme.

Hackney's new mayor, Phil Glanville, has pledged that Hackney will be the first borough to build 500 homes for the London Living Rent scheme. If it all goes to plan, it looks like renting in east London could actually be about to get cheaper. Who'd have thought it?

In other good news, rent costs in London have fallen for the first time in nearly six years

And check out this map, which shows the cheapest and most expensive areas to rent a room in London

Advertising
Advertising

Comments

7 comments
Salman K

I wish I d have voted for you. London getting better day by day.

(((Andrew B

How many new homes will this result in?


Chris B

Who pays for this? Oh yes, everyone who's moderately successful in their job. Politicians that rob Peter to pay Paul can always count on Paul's vote.

Sarah A

Um no, funding for GLA housing come from central government actually, it's called the London Settlement. And yes, it comes from taxes, but not just the rich pay taxes, just FYI...

Amy K

This is great news!

Quick editorial clarification..isn't that the sum of house hold incomes NOT the average? The average of two people on £17500 is £17500...

Tino 

Average of two people's income =/= average household income in each borough, but agree it could be clearer

Mike S

Now this is great news for us Londoners indeed.