Rent-controlled affordable homes plan for key workers
The Mayor of London, Sadiq Khan, has revealed plans for thousands of rent-controlled affordable homes for key workers in the capital. This, according to City Hall, has the potential to save key workers thousands in rent every year.
The announcement builds on work from the Mayor to tackle the capital’s housing crisis. More council homes in London under Khan than at any time since the 1970s and, before the pandemic, more new homes of all tenures were completed in London at any point since the 1930s.
The new scheme for rent-controlled affordable homes is specifically aimed at key workers. This includes those at the start of their careers who are less likely to secure a social rented home and may struggle to afford one that meets their needs in the private market. Key workers are a third of employed Londoners, including both the private and public sectors.
These homes “will offer an affordable option for long-term rent” says City Hall, and there is no expectation for a tenant to buy a share of the home, either at the outset or after a period of saving for a deposit. This approach to rent setting and increase is “simpler than other forms of affordable housing such as Shared Ownership.”
Up to 6,000 new homes will be started in London by 2030 under this scheme, including homes for sharers, which are intended to be a “valuable option” for single Londoners who would otherwise struggle to afford to rent a Key Worker Living Rent home on their own.
The mayor made it a manifesto pledge for new rent-controlled affordable homes with rents capped and linked to the income of a key worker.
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