Plans for more affordable housing in London

The Mayor of London has unveiled plans for new rent-controlled homes to make housing more affordable for key workers in London.

The proposals could save key £600 a month on their rent, and provide a new, simpler rent-setting model for developers to deliver thousands of homes across the capital.

The rent-control homes would be built in addition to social rented homes and aimed at Londoners on ordinary incomes, who are unlikely to secure social housing but struggle to pay high private rents.

The Mayor has set a target of at least 6,000 of these homes by 2030.

According to statistics, 24 per cent of private renting households in London spend over half of their gross household income on housing costs and 21 per cent of London’s private renters said they were struggling to make ends meet.

The new homes will be primarily targeted at London’s key workers and therefore referred to formally as Key Worker Living Rent (KWLR) homes.

Rents have been proposed based on 40 per cent of average key worker household incomes after tax.

The Mayor of London, Sadiq Khan, said: “I am determined to do everything in my power to make housing more affordable for Londoners. The housing crisis in our capital doesn’t just affect those on the lowest incomes, it impacts those on ordinary incomes who struggle to meet high housing costs in London.  

 “That includes the everyday heroes who are the backbone of our city – our nurses, teachers, bus drivers, shop workers, and cleaners. To deliver on my manifesto commitment, we want to introduce new rent-controlled homes for Londoners, which could save key workers up to £600 per month on their rent.

“I welcome views from all Londoners on how we can make this new type of housing a success, for the thousands who need and deserve a more affordable home, as we build a fairer London for everyone.”

Ben Twomey, chief executive of Generation Rent, said: “While the cost of renting crisis continues to rage across the capital, it is welcome that the Mayor of London is looking at new ways to protect people from soaring rents.

“We rely on key workers for our communities to function. They build our homes, look after our health and educate our children, so everyone benefits when they can afford to live near their workplaces. Generation Rent encourages tenants and key workers to have their say on these new proposals.”