Hundreds more Londoners will be able to rent a genuinely affordable home and save money for a deposit to buy it as part of the capital’s largest London Living Rent scheme.
Living Rent is aimed at helping middle income earners who would otherwise typically be struggling in the private rented sector save for a deposit by offering rents based on a third of local average wages.
In addition, it makes home ownership in the capital a realistic prospect for the many Londoners who feel priced out of the property market, according to London Mayor Sadiq Khan.
Some £6.8 million has been invested in the Sugar Works development at Royal Wharf, in East London as part of a deal to provide 12,000 affordable homes, including those based on social rent levels.
The first tenants have now move into the homes, from studios to four bedrooms, and pay on average around two thirds of the market rent and will be able to buy in the future either outright or through shared ownership.
James Murray, Deputy Mayor for housing and residential development, said it shows the commitment to the Mayor’s manifesto pledge to make renting more affordable so people can save for a deposit.
‘Fixing the capital’s housing crisis is a marathon not a sprint, and Government will need to play its part, but this shows what a difference Sadiq Khan is making already by offering Londoners an alternative to the private rented sector and providing genuinely affordable homes at lower rents,’ he added.
The Sugar Works is part of the Royal Wharf development which will see the creation of 3,385 homes for approximately 10,000 residents.
Overall Khan has committed to starting 90,000 new affordable homes by 2021 and two thirds are expected to be aimed at first time buyers in a multi-million pound partnership with London & Quadrant (L&Q).
‘Private rental market prices can make saving for a deposit incredibly difficult for some households in the capital, so we’re pleased to be supporting such an innovative programme,’ said Lukman Ahmed, commercial director at L&Q.
Eligibility for the Living Rent programme is restricted to households that are currently renting, with a maximum income of £60,000 and who are not currently able to purchase a home in the local area.
When funded through the Greater London Authority’s programme, it is expected to actively support tenants into home ownership within 10 years.
