Mayor of London Sadiq Khan has announced plans for a 'London Living Rent', which will help some of those on low to medium incomes.
London Living Rent will vary from borough to borough. Those who take advantage of the scheme will pay a rent that is one-third of the average household income for the borough they live in.
Here's the key paragraph to put this into context:
"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."
If £35,000 to £45,000 still sounds like quite a lot, bear in mind this is household income — so a couple each earning £18,000 could be eligible. Newly-elected Mayor of Hackney Philip Glanville confirmed that his borough would act swiftly to build 500 new homes on the London Living Rent scheme.
London Living Rent would (for now) only apply to selected, newly-built properties and would have no direct bearing on existing tenancies. Nevertheless, it is a form of rent capping, which has staunch opponents and advocates.
The Mayor also announced plans to protect social housing for those on low income. Specifically, he will work with housing associations to block 'rent conversions', whereby existing social housing is re-let at higher rents.
Further details of the schemes will be announced in the coming months.