London Living Rent confirmed as homeownership product

The Greater London Authority (GLA) has today published additional information about the programme, which will see rents based on a third of average local incomes.

“London Living Rent homes delivered in partnership with the mayor should enable tenants to put themselves firmly on the route to homeownership,” a GLA statement said.

“London Living Rent tenants should be strongly encouraged and offered guidance to make substantial savings while living in London Living Rent homes in return for their significantly discounted rent.”

City Hall is planning to draw up standard guidance on how it will require landlords to provide a mechanism for helping tenants to save. It will “strongly encourage” housing associations and boroughs to “offer additional savings incentives and support”.

Inside Housing revealed last month that London mayor Sadiq Khan was planning to alter London Living Rent to enable tenants to buy a home at the end of their tenancy, in a concession to the government’s homeownership drive. Inside Housing has asked the GLA for more information about whether the tenancies are likely to be renewed if tenants have not bought a home at the end of the five years.

The GLA has published a table of proposed London Living Rents for each ward. Households earning £25,000 to £60,000 are likely to be eligible for the scheme.

The GLA is proposing to give households assured shorthold tenancies generally up to five years with annual inflation-linked rent increases.

Yesterday, Mr Khan announced he would scrap conversions of social rent homes to affordable rent properties in his new programme.